Virtusa (NASDAQ: VRTU) and Gemalto (OTCMKTS:GTOMY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Risk & Volatility
Virtusa has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Gemalto has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
This table compares Virtusa and Gemalto’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Virtusa||$858.73 million||1.66||$11.85 million||$0.67||72.21|
|Gemalto||$3.36 billion||1.67||-$479.14 million||N/A||N/A|
Virtusa has higher earnings, but lower revenue than Gemalto.
Gemalto pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. Virtusa does not pay a dividend.
This table compares Virtusa and Gemalto’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Virtusa and Gemalto, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Virtusa currently has a consensus target price of $58.71, indicating a potential upside of 21.36%. Given Virtusa’s higher possible upside, research analysts plainly believe Virtusa is more favorable than Gemalto.
Insider & Institutional Ownership
86.7% of Virtusa shares are owned by institutional investors. Comparatively, 0.0% of Gemalto shares are owned by institutional investors. 6.0% of Virtusa 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.
Virtusa beats Gemalto on 10 of the 13 factors compared between the two stocks.
Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients’ core customer-facing processes into one or more core systems. It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development. The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.
Gemalto N.V. provides digital security products and services worldwide. The company operates through two segments: Identity, IoT & Cybersecurity; and Smartcards & Issuance. It offers chip cards, mobile financial services, and contactless payment solutions; secure electronic identity documents, such as ePassports and badges; multi-factor online authentication and transaction solutions, as well as a range of support services; and data encryption systems and software monetization solutions to financial institutions, retailers, mass transit authorities, and government agencies and service providers, as well as enterprises of various sizes. The company also sells subscriber authentication and rights management solutions to Pay TV service providers. In addition, it offers various solutions for mobile network operators, including subscriber identification modules and universal integrated circuit cards, and back-office platforms; and services comprising roaming optimization, mobile payment and marketing, personal data management, and trusted services management. Further, the company provides industrial solutions that enable machine-to-machine (M2M) data exchange through hardware modules and operating software, which connect machines to digital networks, as well as cloud-based M2M application enablement and late-stage personalization platforms to enhance operations, productivity, and efficiency in the Internet of things for the utilities, health, and automotive markets. Additionally, it licenses its intellectual property and provides security and other technology advisory services. The company was formerly known as Axalto Holding N.V. and changed its name to Gemalto N.V. in June 2006. Gemalto N.V. was incorporated in 2002 and is headquartered in Amsterdam, the Netherlands.
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