Verint Systems (NASDAQ:VRNT – Get Free Report) and Rand Worldwide (OTCMKTS:RWWI – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Volatility and Risk
Verint Systems has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Rand Worldwide has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.
Profitability
This table compares Verint Systems and Rand Worldwide’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Verint Systems | 7.66% | 12.35% | 4.82% |
Rand Worldwide | 18.60% | 106.88% | 18.94% |
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Verint Systems | 0 | 2 | 5 | 0 | 2.71 |
Rand Worldwide | 0 | 0 | 0 | 0 | 0.00 |
Verint Systems presently has a consensus price target of $30.33, suggesting a potential upside of 67.68%. Given Verint Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Verint Systems is more favorable than Rand Worldwide.
Earnings and Valuation
This table compares Verint Systems and Rand Worldwide”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Verint Systems | $909.19 million | 1.20 | $82.27 million | $0.82 | 22.06 |
Rand Worldwide | $408.11 million | 1.25 | $52.43 million | $1.33 | 11.45 |
Verint Systems has higher revenue and earnings than Rand Worldwide. Rand Worldwide is trading at a lower price-to-earnings ratio than Verint Systems, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
95.0% of Verint Systems shares are owned by institutional investors. Comparatively, 0.0% of Rand Worldwide shares are owned by institutional investors. 1.3% of Verint Systems shares are owned by insiders. Comparatively, 59.2% of Rand Worldwide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Verint Systems beats Rand Worldwide on 8 of the 14 factors compared between the two stocks.
About Verint Systems
Verint Systems Inc. provides customer engagement solutions worldwide. It offers forecasting and scheduling, channels and routing, knowledge management, fraud and security solutions, quality and compliance, analytics and insights, real-time assistance, self-services, financial compliance, and voice pf the consumer solutions. The company provides Verint Open platform designed to help brands increase CX automation across all touchpoints between organization and customers in the contact center, back office, branch, web sites, and mobile apps. It serves banking, insurance, public, retail, and telecommunication industries. Verint Systems Inc. was incorporated in 1994 and is headquartered in Melville, New York.
About Rand Worldwide
Rand Worldwide, Inc. provides design automation and data management solutions primarily in the United States and Canada. It operates in five divisions: IMAGINiT Technologies, Rand Simulation, Facilities Management, ASCENT, and Rand 3D. The IMAGINiT Technologies division resells Autodesk solutions and system integration, and consulting services to customers in the manufacturing, infrastructure, building, and media and entertainment industries; resells Twinmotion visualization software, which provides design professionals to transform architectural models and designs into photorealistic images and immersive videos; offers a range of 3D laser scanning equipment and related software to help architectural, engineering, and construction firms; and sells its own proprietary software products and related services. The Rand Simulation division offers Ansys engineering simulation software to help organizations incorporate engineering simulation technology into the product development process; and provides simulation consulting services to enable organizations to achieve cost savings and design improvements through simulation technology. The Facilities Management division provides ARCHIBUS products for facilities management software for space planning, strategic planning, and lease/property administration; and offers various training, consulting, and support services for the ARCHIBUS products. The ASCENT division provides professional training materials and knowledge products for engineering software tools. The Rand 3D division offers training solutions for Dassault Systèmes and PTC products, including Pro/ENGINEER, CREO, and Windchill. Rand Worldwide, Inc. is based in Baltimore, Maryland.
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