Analyzing Verint Systems (VRNT) and KEYW (KEYW)

Verint Systems (NASDAQ: VRNT) and KEYW (NASDAQ:KEYW) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares Verint Systems and KEYW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verint Systems 0.94% 10.69% 4.66%
KEYW -0.52% -1.47% -0.65%

Valuation and Earnings

This table compares Verint Systems and KEYW’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verint Systems $1.14 billion 2.64 -$6.62 million $1.77 26.50
KEYW $441.59 million 0.86 -$10.95 million ($0.45) -16.93

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

Institutional & Insider Ownership

95.0% of Verint Systems shares are owned by institutional investors. 1.4% of Verint Systems shares are owned by company insiders. Comparatively, 3.8% of KEYW shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Verint Systems has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, KEYW has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Verint Systems and KEYW, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verint Systems 0 1 3 0 2.75
KEYW 0 3 4 0 2.57

Verint Systems presently has a consensus target price of $48.13, indicating a potential upside of 2.61%. KEYW has a consensus target price of $9.83, indicating a potential upside of 29.05%. Given KEYW’s higher possible upside, analysts plainly believe KEYW is more favorable than Verint Systems.

Summary

Verint Systems beats KEYW on 11 of the 14 factors compared between the two stocks.

Verint Systems Company Profile

Verint Systems Inc. provides actionable intelligence solutions and value-added services worldwide. Its Customer Engagement Solutions segment provides automated quality management, automated verification, branch surveillance and investigation, case management, chat engagement, coaching/learning, compliance recording, customer communities, desktop and process analytics, digital feedback, email engagement, employee desktop, enterprise feedback, financial compliance, full-time recording, gamification, identity analytics, internal communities, knowledge management, mobile workforce, performance management, robotic process automation, social analytics, speech and text analytics, virtual assistant, voice self-service, voice self-service fraud detection, Web/mobile self-service, work manager, and workforce management solutions. The company's Cyber Intelligence Solutions segment offers cyber security solutions; intelligence fusion center and Web and social intelligence software that enables collection, fusion, and analysis of data from the Web; network intelligence suite, which generates critical intelligence of data captured from various network and open sources; and situational intelligence software enables security organizations to fuse, analyze, and report information, as well as take action on risks, alarms, and incidents. The company also offers a range of customer services, including implementation and training, consulting and managed, and maintenance support services. It sells its solutions through its direct sales team; and through indirect channels, such as distributors, systems integrators, value-added resellers, and original equipment manufacturer partners. The company was founded in 1994 and is headquartered in Melville, New York.

KEYW Company Profile

The KeyW Holding Corporation, together with its subsidiaries, provides engineering and technology solutions to support the collection, processing, analysis, and dissemination of information across the spectrum of the intelligence, cyber, and counterterrorism communities in the United States. The company's solutions are designed to meet the critical needs of agile intelligence and U.S. Government national security priorities comprising cyber operations and training; geospatial intelligence; cloud and data analytics; engineering; and intelligence analysis and operations. Its products include electro-optical, hyperspectral, and synthetic aperture radar sensors and other products. The company provides its products and services to the U.S. federal, state, and local law enforcement agencies; foreign governments; and other entities in the cyber and counterterrorism markets. The KeyW Holding Corporation was founded in 2008 and is headquartered in Hanover, Maryland.

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