Comparing VerifyMe (NASDAQ:VRME) and Open Text (NASDAQ:OTEX)

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

Earnings and Valuation

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

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

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.

Volatility and Risk

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

Institutional and Insider Ownership

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

Profitability

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

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

Analyst Ratings

This is a breakdown of current recommendations for Open Text and VerifyMe, as reported by MarketBeat.com.

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

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

Summary

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

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.

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.