Reviewing Convergys (CVG) and VASCO Data Security International (VDSI)

Convergys (NYSE:CVG) and VASCO Data Security International (NASDAQ:VDSI) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Convergys and VASCO Data Security International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Convergys 0 2 0 0 2.00
VASCO Data Security International 0 1 2 0 2.67

Convergys presently has a consensus price target of $26.50, suggesting a potential upside of 8.56%. VASCO Data Security International has a consensus price target of $23.00, suggesting a potential upside of 5.50%. Given Convergys’ higher probable upside, research analysts clearly believe Convergys is more favorable than VASCO Data Security International.

Insider & Institutional Ownership

56.9% of VASCO Data Security International shares are held by institutional investors. 1.7% of Convergys shares are held by company insiders. Comparatively, 22.5% of VASCO Data Security International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Convergys pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. VASCO Data Security International does not pay a dividend. Convergys has raised its dividend for 5 consecutive years.

Profitability

This table compares Convergys and VASCO Data Security International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Convergys N/A N/A N/A
VASCO Data Security International N/A N/A N/A

Valuation and Earnings

This table compares Convergys and VASCO Data Security International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Convergys N/A N/A N/A N/A N/A
VASCO Data Security International N/A N/A N/A N/A N/A

Summary

VASCO Data Security International beats Convergys on 4 of the 7 factors compared between the two stocks.

Convergys Company Profile

Convergys Corporation provides customer management services to communications and media, technology, financial services, retail, healthcare, government, travel and hospitality, and other vertical markets worldwide. The company offers solutions across the customer lifecycle, including sales, customer service, technical support, customer retention, and collection, as well as security, compliance, and fraud solutions; and solutions in contact center technology comprising omni-channel interaction, cross-channel integration framework, real-time decisioning engine, robotic process automation, intelligent notification, campaign management, personalized care, personalized selling, agent productivity, and retention solutions. It also provides analytics and consulting, and software solutions, such as enterprise feedback management, integrated customer experience analytics, post-contact surveys, relational loyalty research, customer segmentation and profiling, call elimination analysis, analysis of customer effort, digital channel optimization, and integrated contact center analytics solutions, as well as voice of customer software. The company operates through 140 contact centers. Convergys Corporation was founded in 1998 and is headquartered in Cincinnati, Ohio.

VASCO Data Security International Company Profile

VASCO Data Security International, Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide. The company offers DIGIPASS software authenticators; DIGIPASS for Apps, a software development kit; DIGIPASS for Mobile, a mobile authenticator that operates as a discrete mobile application; IDENTIKEY Risk Manager, an anti-fraud solution; and application shielding with runtime application self-protection that neutralizes the threat of attacks on mobile apps. It also provides eSignLive eSignature solution; and eSignLive eVault Manager, a Web-based platform that provides mortgage lenders, auto financers, equipment lessors, and other financial services organizations the means to store, assign, and service electronic mortgage notes, and secured loans and leases. In addition, the company offers VACMAN solutions; DIGIPASS hardware authenticators to support authentication and digital signatures for applications running on desktop PCs, laptops, tablets, and smart phones; and IDENTIKEY Authentication Server, an authentication server that supports the deployment, use, and administration of DIGIPASS strong user authentication. It sells its products to financial institutions, businesses, and government organizations through direct sales force, distributors, resellers, systems integrators, and original equipment manufacturers. VASCO Data Security International, Inc. was founded in 1991 and is headquartered in Chicago, Illinois.

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