Analyzing Verint Systems (VRNT) & Pareteum (TEUM)

Verint Systems (NASDAQ:VRNT) and Pareteum (NASDAQ:TEUM) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Verint Systems has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Pareteum has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Valuation & Earnings

This table compares Verint Systems and Pareteum’s revenue, earnings per share (EPS) 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 25.66
Pareteum $13.55 million 16.10 -$12.46 million ($0.84) -2.65

Verint Systems has higher revenue and earnings than Pareteum. Pareteum 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 Pareteum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verint Systems 4.58% 12.47% 5.48%
Pareteum -67.83% -60.67% -43.28%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Verint Systems and Pareteum, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verint Systems 0 0 6 0 3.00
Pareteum 0 1 2 0 2.67

Verint Systems currently has a consensus price target of $56.67, suggesting a potential upside of 24.76%. Given Verint Systems’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Verint Systems is more favorable than Pareteum.

Institutional & Insider Ownership

94.7% of Verint Systems shares are owned by institutional investors. Comparatively, 6.8% of Pareteum shares are owned by institutional investors. 1.4% of Verint Systems shares are owned by company insiders. Comparatively, 3.4% of Pareteum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Verint Systems beats Pareteum on 12 of the 14 factors compared between the two stocks.

Verint Systems Company Profile

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.

Pareteum Company Profile

Pareteum Corporation operates a communications cloud services platform in Europe and internationally. Its platform provides mobility, messaging, and security services and applications, with a single-sign-on, application program interface (API), and software development suite. The company's platform hosts integrated IT/back office and core network functionality for mobile network operators, as well as for enterprises to implement and leverage mobile communications solutions on a SaaS, PaaS, or IaaS basis. It also offers operational support system for channel partners with APIs for integration with third party systems, workflows for complex application orchestration, and customer support with branded portals and plug-ins for various other applications. Pareteum Corporation serves the markets of Internet of Things, mobile virtual network operators, smart cities, and application developers. The company was formerly known as Elephant Talk Communications Corp. and changed its name to Pareteum Corporation in November 2016. Pareteum Corporation is based in New York, New York.

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