PTC (NASDAQ:PTC – Get Free Report) and Verint Systems (NASDAQ:VRNT – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Profitability
This table compares PTC and Verint Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PTC | 20.74% | 17.09% | 9.18% |
| Verint Systems | 6.87% | 11.06% | 4.37% |
Institutional and Insider Ownership
95.1% of PTC shares are owned by institutional investors. Comparatively, 94.9% of Verint Systems shares are owned by institutional investors. 0.3% of PTC shares are owned by company insiders. Comparatively, 1.3% of Verint Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PTC | $2.74 billion | 7.63 | $376.33 million | $6.14 | 28.43 |
| Verint Systems | $893.84 million | 1.38 | $82.27 million | $0.71 | 28.59 |
PTC has higher revenue and earnings than Verint Systems. PTC is trading at a lower price-to-earnings ratio than Verint Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for PTC and Verint Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PTC | 0 | 6 | 11 | 0 | 2.65 |
| Verint Systems | 1 | 7 | 1 | 0 | 2.00 |
PTC currently has a consensus target price of $205.92, indicating a potential upside of 17.96%. Verint Systems has a consensus target price of $26.33, indicating a potential upside of 29.72%. Given Verint Systems’ higher possible upside, analysts clearly believe Verint Systems is more favorable than PTC.
Risk and Volatility
PTC has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.
Summary
PTC beats Verint Systems on 11 of the 14 factors compared between the two stocks.
About PTC
PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.
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.
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