Verint Systems (VRNT) vs. Digimarc (DMRC) Head-To-Head Comparison

Verint Systems (NASDAQ:VRNT) and Digimarc (NASDAQ:DMRC) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Insider & Institutional Ownership

94.7% of Verint Systems shares are owned by institutional investors. Comparatively, 55.6% of Digimarc shares are owned by institutional investors. 1.4% of Verint Systems shares are owned by insiders. Comparatively, 7.5% of Digimarc shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Verint Systems and Digimarc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verint Systems 0 0 5 0 3.00
Digimarc 0 0 4 0 3.00

Verint Systems currently has a consensus target price of $55.70, suggesting a potential upside of 22.18%. Digimarc has a consensus target price of $42.75, suggesting a potential upside of 61.26%. Given Digimarc’s higher probable upside, analysts clearly believe Digimarc is more favorable than Verint Systems.

Earnings and Valuation

This table compares Verint Systems and Digimarc’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verint Systems $1.14 billion 2.61 -$6.62 million $1.77 25.76
Digimarc $25.21 million 12.49 -$25.77 million ($2.44) -10.86

Verint Systems has higher revenue and earnings than Digimarc. Digimarc is trading at a lower price-to-earnings ratio than Verint Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Verint Systems and Digimarc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verint Systems 3.29% 11.69% 5.11%
Digimarc -116.98% -37.68% -35.22%

Risk & Volatility

Verint Systems has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Digimarc has a beta of -1.22, suggesting that its share price is 222% less volatile than the S&P 500.

Summary

Verint Systems beats Digimarc on 10 of the 13 factors compared between the two stocks.

About Verint Systems

Verint Systems Inc. provides actionable intelligence solutions and value-added services worldwide. Its Customer Engagement Solutions segment provides automated quality management, automated verification, branch surveillance and investigation, case management, chat engagement, coaching/learning, compliance recording, customer communities, desktop and process analytics, digital feedback, email engagement, employee desktop, enterprise feedback, financial compliance, full-time recording, gamification, identity analytics, internal communities, knowledge management, mobile workforce, performance management, robotic process automation, social analytics, speech and text analytics, virtual assistant, voice self-service, voice self-service fraud detection, Web/mobile self-service, work manager, and workforce management solutions. The company's Cyber Intelligence Solutions segment offers cyber security solutions; intelligence fusion center and Web and social intelligence software that enables collection, fusion, and analysis of data from the Web; network intelligence suite, which generates critical intelligence of data captured from various network and open sources; and situational intelligence software enables security organizations to fuse, analyze, and report information, as well as take action on risks, alarms, and incidents. The company also offers a range of customer services, including implementation and training, consulting and managed, and maintenance support services. It sells its solutions through its direct sales team; and through indirect channels, such as distributors, systems integrators, value-added resellers, and original equipment manufacturer partners. The company was founded in 1994 and is headquartered in Melville, New York.

About Digimarc

Digimarc Corporation provides media identification and management solutions to commercial entities and government customers in the United States and internationally. The company offers Digimarc Intuitive Computing Platform, a comprehensive set of technologies for identifying, discovering, and interacting with digitally-enhanced media, which includes Digimarc Barcode, a method for imperceptibly enhancing packaging, print, images, thermal labels, audio, and other objects with data that is detected by enabled devices, such as smart phones, computers, barcode scanners, and machine-vision equipment. It also provides Digimarc Discover software that enables an ecosystem of connected devices to identify content or materials and deliver information. The company's solutions identify, track, manage, and protect content; and enable new consumer applications to access networks and information from personal computers and mobile devices. Its solutions are used in various media identification and management products and solutions, such as counterfeiting and piracy deterrence; online e-publication piracy protection; content identification and media management; authentication and monitoring; retail point of sale transaction processing; linking to networks and providing access to information; and enhanced services in support of mobile commerce. The company provides its solutions directly and through its business partners. Digimarc Corporation was founded in 2008 and is based in Beaverton, Oregon.

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