VeriFone Systems (PAY) versus Procera Networks (PKT) Head-To-Head Survey

VeriFone Systems (NYSE: PAY) and Procera Networks (NASDAQ:PKT) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Profitability

This table compares VeriFone Systems and Procera Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VeriFone Systems -9.29% 13.52% 4.48%
Procera Networks -16.09% -10.44% -8.57%

Volatility and Risk

VeriFone Systems has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Procera Networks has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for VeriFone Systems and Procera Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VeriFone Systems 1 12 3 0 2.13
Procera Networks 0 0 0 0 N/A

VeriFone Systems presently has a consensus target price of $20.15, indicating a potential upside of 18.00%. Given VeriFone Systems’ higher possible upside, equities analysts clearly believe VeriFone Systems is more favorable than Procera Networks.

Earnings & Valuation

This table compares VeriFone Systems and Procera Networks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VeriFone Systems $1.87 billion 1.03 -$173.82 million ($1.55) -11.02
Procera Networks N/A N/A N/A ($1.08) -10.65

Procera Networks has lower revenue, but higher earnings than VeriFone Systems. VeriFone Systems is trading at a lower price-to-earnings ratio than Procera Networks, indicating that it is currently the more affordable of the two stocks.

Summary

VeriFone Systems beats Procera Networks on 7 of the 9 factors compared between the two stocks.

About VeriFone Systems

VeriFone Systems, Inc. offers payments and commerce solutions. The Company is engaged in designing, manufacturing, marketing and supplying a range of payment solutions and complementary services. It provides solutions and services for the retail point-of-sale (POS) that enable various forms of commerce. The Company’s segments include Verifone Systems and Verifone Services. The Verifone Systems segment delivers point of sale electronic payment devices that run the operating systems, security and encryption software, and certified payment software for both payments and commerce. The Verifone Services segment delivers device-related leasing and maintenance, payment transaction routing and reporting, and commerce based services, such as advertising on digital screens. The Company operates in various sectors, such as financial services, retail, petroleum, restaurant, hospitality, transportation and healthcare.

About Procera Networks

Procera Networks, Inc. is a provider of subscriber experience assurance (SEA) solutions designed for network operators around the world. The Company’s PacketLogic solutions enable network operators to gain insights, make decisions, and take actions to ensure a quality experience for Internet connected devices. Network operators deploy its technology to gain insights on their subscribers and networks, make decisions on service packaging and then deliver those solutions to subscribers connected to their network. Its network operator customers include service provider customers and enterprises. Its service provider customers include mobile service providers and broadband service providers, which include cable multiple system operators (MSOs), telecommunications companies, Wi-Fi network operators, and Internet Service Providers (ISPs). Its enterprise customers include educational institutions, commercial enterprises and government and municipal agencies.

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