Head to Head Analysis: Verra Mobility (NASDAQ:VRRM) and KORE Group (NYSE:KORE)

Verra Mobility (NASDAQ:VRRM) and KORE Group (NYSE:KORE) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

57.5% of KORE Group shares are held by institutional investors. 1.3% of Verra Mobility shares are held by company insiders. Comparatively, 33.5% of KORE Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Verra Mobility and KORE Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verra Mobility	$979.08 million	0.73	$136.63 million	$0.82	5.71
KORE Group	$285.95 million	0.57	-$62.98 million	($3.86)	-2.38

Verra Mobility has higher revenue and earnings than KORE Group. KORE Group is trading at a lower price-to-earnings ratio than Verra Mobility, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Verra Mobility and KORE Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verra Mobility	3	7	0	0	1.70
KORE Group	1	1	0	0	1.50

Verra Mobility presently has a consensus target price of $6.83, suggesting a potential upside of 46.01%. KORE Group has a consensus target price of $5.00, suggesting a potential downside of 45.56%. Given Verra Mobility’s stronger consensus rating and higher probable upside, research analysts plainly believe Verra Mobility is more favorable than KORE Group.

Profitability

This table compares Verra Mobility and KORE Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verra Mobility	13.38%	55.59%	10.83%
KORE Group	-27.37%	N/A	-18.41%

Risk & Volatility

Verra Mobility has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, KORE Group has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Summary

Verra Mobility beats KORE Group on 10 of the 13 factors compared between the two stocks.

About Verra Mobility

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Australia, Canada, and Europe. It operates through three segments: Commercial Services, Government Solutions, and Parking Solutions. The Commercial Services segment provides automated toll and violations management, and title and registration services to rental car companies, fleet management companies, and other large fleet owners. The Government Solutions segment offers automated safety solutions to national, state, and local government agencies, including services and technologies that enable photo enforcement through road safety cameras to detect and process traffic violations for red-light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Parking Solutions segment provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities, and transportation hubs. Verra Mobility Corporation was incorporated in 2016 and is headquartered in Mesa, Arizona.

About KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company’s products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.