Critical Survey: Verify Smart (OTCMKTS:VSMR) & Vale (NYSE:VALE)

Vale (NYSE:VALE) and Verify Smart (OTCMKTS:VSMR) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Vale and Verify Smart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vale	1	4	6	0	2.45
Verify Smart	0	0	0	0	N/A

Vale currently has a consensus target price of $16.67, suggesting a potential upside of 38.16%. Given Vale’s higher possible upside, equities analysts clearly believe Vale is more favorable than Verify Smart.

Risk & Volatility

Vale has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Verify Smart has a beta of 3, indicating that its stock price is 200% more volatile than the S&P 500.

Insider & Institutional Ownership

21.9% of Vale shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Vale and Verify Smart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vale	19.10%	20.00%	8.82%
Verify Smart	N/A	N/A	N/A

Valuation & Earnings

This table compares Vale and Verify Smart’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vale	$41.78 billion	1.29	$7.98 billion	$1.83	6.59
Verify Smart	N/A	N/A	N/A	N/A	N/A

Vale has higher revenue and earnings than Verify Smart.

Summary

Vale beats Verify Smart on 7 of the 8 factors compared between the two stocks.

About Vale

Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services. The Energy Transition Materials segment produces and extracts nickel used to produce stainless steel, electric vehicles, and metal alloys; and its by-products, such as gold, silver, cobalt, precious metals, platinum, and others, as well as copper used in the construction sector to produce pipes and electrical wires. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.

About Verify Smart

Verify Smart Corp. provides wireless software solutions focused on IP fraud protection for secure authenticated transactions and celebrity services for fans interactions worldwide. The company's software solutions are delivered as Software as a Service model over the Internet, and allows its clients to access the company's application software and databases. Its products include VerifyNGo, which provides instant personal verification to combat fraud and identity theft through mobile device; and Prvii, a mobile communications service that enables celebrities to monetize their fan base via messaging channels. Verify Smart Corp. promotes its products and services across various markets, including consumer brands, financial services, sports/entertainment, governments, and educational institutions. The company was formerly known as Treasure Explorations Inc. and changed its name to Verify Smart Corp. in March 2009. Verify Smart Corp. was founded in 2006 and is based in Fernley, Nevada.