Verint Systems (VRNT) and Altaba (AABA) Financial Survey

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

Profitability

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

Net Margins Return on Equity Return on Assets
Verint Systems 0.94% 10.69% 4.66%
Altaba N/A N/A N/A

Valuation & Earnings

This table compares Verint Systems and Altaba’s gross 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 2.51 -$6.62 million $1.77 25.17
Altaba $5.17 billion 12.44 -$214.32 million N/A N/A

Verint Systems has higher earnings, but lower revenue than Altaba.

Risk and Volatility

Verint Systems has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Altaba has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Verint Systems and Altaba, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verint Systems 0 1 3 0 2.75
Altaba 0 1 4 0 2.80

Verint Systems presently has a consensus price target of $48.13, indicating a potential upside of 8.02%. Altaba has a consensus price target of $101.00, indicating a potential upside of 37.21%. Given Altaba’s stronger consensus rating and higher possible upside, analysts clearly believe Altaba is more favorable than Verint Systems.

Insider and Institutional Ownership

94.6% of Verint Systems shares are held by institutional investors. Comparatively, 72.0% of Altaba shares are held by institutional investors. 1.4% of Verint Systems shares are held by company insiders. Comparatively, 24.0% of Altaba shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Altaba beats Verint Systems on 8 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 Altaba

Altaba Inc. operates as a non-diversified, closed-end management investment company in the United States. Its assets consist primarily of equity investments, short-term debt investments, and cash. The company was formerly known as Yahoo! Inc. and changed its name to Altaba Inc. in June 2017. Altaba Inc. was founded in 1994 and is based in New York, New York.

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