Open Text (NASDAQ:OTEX) and VerifyMe (NASDAQ:VRME) Head-To-Head Review

VerifyMe (NASDAQ:VRME) and Open Text (NASDAQ:OTEX) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares VerifyMe and Open Text’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VerifyMe	$25.31 million	0.65	-$3.39 million	($0.35)	-4.60
Open Text	$4.48 billion	2.11	$150.38 million	$0.47	73.87

Open Text has higher revenue and earnings than VerifyMe. VerifyMe is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares VerifyMe and Open Text’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VerifyMe	-13.39%	-20.35%	-13.09%
Open Text	2.24%	22.99%	5.51%

Institutional and Insider Ownership

8.8% of VerifyMe shares are owned by institutional investors. Comparatively, 70.4% of Open Text shares are owned by institutional investors. 18.1% of VerifyMe shares are owned by insiders. Comparatively, 10.6% of Open Text shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for VerifyMe and Open Text, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VerifyMe	0	0	2	0	3.00
Open Text	0	4	4	0	2.50

VerifyMe presently has a consensus price target of $2.85, suggesting a potential upside of 77.02%. Open Text has a consensus price target of $46.25, suggesting a potential upside of 33.21%. Given VerifyMe’s stronger consensus rating and higher probable upside, equities analysts plainly believe VerifyMe is more favorable than Open Text.

Volatility & Risk

VerifyMe has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Open Text has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Summary

Open Text beats VerifyMe on 11 of the 14 factors compared between the two stocks.

About VerifyMe

VerifyMe, Inc., together with its subsidiary, PeriShip Global, LLC, operates as a technology solutions provider that specializes in products to connect brands with consumers and providing brands with end-to-end logistics management for their products. The company operates through two segments, VerifyMe Solutions and PeriShip Global Solutions. The VerifyMe Solutions segment offers technology solutions to connect brands with consumers allowing brand owners to gather business intelligence while engaging directly with their consumers. Its solutions provide brand protection and supply chain functions, such as counterfeit prevention, traceability, consumer engagement solutions, and authentication for labels, packaging, and products, as well as tamper-proof labels. The PeriShip Global Solutions segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment's products include PeriTrack customer dashboard, an integrated web portal tool gives its customers an in-depth look at their shipping activities based on real-time data. It also provides call center, pre-transit, post-delivery, and weather/traffic services. The company has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.

About Open Text

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation. It also provides cybersecurity cloud solutions to protect, prevent, detect, respond and quickly recover from threats across endpoints, network, applications, IT infrastructure and data, AI-led threat intelligence; and to protect critical information and processes through threat intelligence, forensics, identity, encryption, and cloud-based application security. In addition, the company offers business network cloud for digital supply chains and secure e-commerce ecosystems including digitize and automate procure-to-pay and order-to-cash processes; IT operations management cloud for automation and advancement of IT support and asset management; and analytics & AI cloud solutions that offers artificial intelligence with practical usage to provide organizations with actionable insights and better automation, such as visualizations, advanced natural language processing and understanding, and integrated computer vision capabilities. In addition, it provides application automation cloud, developers cloud, and services. Further, it has strategic partnerships with SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, DXC Technology Company, Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.