Verisign (VRSN) vs. Modsys International (MDSYF) Critical Contrast

Verisign (NASDAQ:VRSN) and Modsys International (OTCMKTS:MDSYF) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Institutional & Insider Ownership

95.8% of Verisign shares are held by institutional investors. 1.4% of Verisign shares are held by insiders. Comparatively, 30.8% of Modsys International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Verisign and Modsys International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verisign $1.21 billion 17.34 $582.48 million $4.75 36.69
Modsys International $10.98 million 2.35 -$12.18 million N/A N/A

Verisign has higher revenue and earnings than Modsys International.

Risk and Volatility

Verisign has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Modsys International has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares Verisign and Modsys International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verisign 47.94% -42.50% 26.65%
Modsys International N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Verisign and Modsys International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verisign 0 3 1 0 2.25
Modsys International 0 0 0 0 N/A

Verisign currently has a consensus target price of $160.00, suggesting a potential downside of 8.19%. Given Verisign’s higher probable upside, equities analysts clearly believe Verisign is more favorable than Modsys International.

Summary

Verisign beats Modsys International on 9 of the 11 factors compared between the two stocks.

Verisign Company Profile

VeriSign, Inc. provides domain name registry services and Internet security worldwide. The company offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, .gov, .jobs, .edu, .name, and other domain names. Its registry services allow individuals and organizations to establish their online identities. The company also provides infrastructure assurance services, including distributed denial of service protection and managed domain name system services. It serves financial institutions, software-as-a-service providers, e-commerce providers, and media companies through direct sales and indirect channels. The company was founded in 1995 and is headquartered in Reston, Virginia.

Modsys International Company Profile

ModSys International Ltd. develops and markets enterprise legacy information technology (IT) modernization solutions and services worldwide. Its technologies and services allow businesses to migrate from their legacy mainframe and distributed IT infrastructures to modern environments and programming languages. The company's activities include the conversion of legacy mainframe applications written in COBOL, CA GEN, Natural, and PL/1 to Java and C# code; conversion of legacy databases, such as IDMS, ADABAS, VSAM, IMS, and ICL to SQL Server, Oracle, and DB2 environments; and selling data mirroring software that allows companies to integrate legacy databases with modern relational databases on a routine/ongoing basis enabling data share across an organization without migration. It also provides professional services comprising project management of migrations, understanding and mapping of the applications, testing, remediation, and ongoing monitoring and management of the environments. ModSys International Ltd. offers its modernization solutions directly to customers, as well as through its strategic partners, including system integrators and other software vendors. The company was formerly known as BluePhoenix Solutions Ltd. and changed its name to ModSys International Ltd. in January 2015. ModSys International Ltd. was founded in 1987 and is headquartered in Dallas, Texas.

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