ZIX (NASDAQ: ZIXI) and Verint Systems (NASDAQ:VRNT) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Insider & Institutional Ownership
65.5% of ZIX shares are held by institutional investors. Comparatively, 96.3% of Verint Systems shares are held by institutional investors. 4.5% of ZIX shares are held by insiders. Comparatively, 1.3% of Verint Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares ZIX and Verint Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
ZIX has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.
Valuation & Earnings
This table compares ZIX and Verint Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ZIX||$65.66 million||3.55||-$8.05 million||$0.08||53.63|
|Verint Systems||$1.06 billion||2.37||-$29.38 million||($0.25)||-158.00|
ZIX has higher earnings, but lower revenue than Verint Systems. Verint Systems is trading at a lower price-to-earnings ratio than ZIX, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for ZIX and Verint Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ZIX currently has a consensus target price of $5.13, suggesting a potential upside of 19.46%. Verint Systems has a consensus target price of $47.60, suggesting a potential upside of 20.51%. Given Verint Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Verint Systems is more favorable than ZIX.
ZIX Company Profile
Zix Corporation offers e-mail encryption, data loss prevention and bring-your-own-device (BYOD) security to meet business data protection and compliance needs. The Company operates through e-mail encryption and security solutions. Its Zix Email Encryption enables the secure exchange of e-mails that include sensitive information through a secure messaging service. It offers ZixDirectory, an e-mail encryption community that is designed to share identities of its members; Best Method of Delivery, which is designed to deliver e-mail, and ZixGateway, which automatically encrypts and decrypts messages with sensitive content. ZixCorp delivers over 1.5 million encrypted messages on a typical business day. On an average, 70% of those encrypted messages are exchanged between senders and recipients. It also offers ZixQuarantine, an e-mail-specific solution. Its ZixOne is a mobile e-mail application that solves the information technology (IT) challenge created by the BYOD trend in the workplace.
Verint Systems Company Profile
Verint Systems Inc. offers Actionable Intelligence solutions. The Company delivers its Actionable Intelligence solutions through two operating segments: Customer Engagement Solutions and Cyber Intelligence Solutions. It is a provider of customer engagement software and services that can be deployed on-premises or in the cloud. Its Customer Engagement vision is powered by its Actionable Intelligence platform to generate intelligence from structured and unstructured data. It offers solutions that help organizations empower their customers and employees through intelligence that can be shared enterprise-wide. It is a provider of security and intelligence data mining software. Its solutions are used for a range of applications, including predictive intelligence, advanced and complex investigations, security threat analysis, and electronic data and physical assets protection, as well as for generating legal evidence and preventing criminal activity and terrorism.
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