Analyzing ModusLink Global Solutions (MLNK) & Verint Systems (VRNT)
ModusLink Global Solutions (NASDAQ: MLNK) and Verint Systems (NASDAQ:VRNT) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.
Volatility and Risk
ModusLink Global Solutions has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.
Insider & Institutional Ownership
56.6% of ModusLink Global Solutions shares are owned by institutional investors. Comparatively, 94.4% of Verint Systems shares are owned by institutional investors. 1.3% of ModusLink Global Solutions shares are owned by company insiders. Comparatively, 1.3% of Verint Systems shares are owned by company 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 is a summary of recent ratings and target prices for ModusLink Global Solutions and Verint Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ModusLink Global Solutions||0||1||0||0||2.00|
ModusLink Global Solutions currently has a consensus price target of $8.00, indicating a potential upside of 367.84%. Verint Systems has a consensus price target of $46.50, indicating a potential upside of 8.14%. Given ModusLink Global Solutions’ higher possible upside, analysts plainly believe ModusLink Global Solutions is more favorable than Verint Systems.
Earnings and Valuation
This table compares ModusLink Global Solutions and Verint Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|ModusLink Global Solutions||$436.62 million||0.22||-$25.82 million||($0.47)||-3.64|
|Verint Systems||$1.06 billion||2.58||-$29.38 million||($0.42)||-102.38|
ModusLink Global Solutions has higher revenue, but lower earnings than Verint Systems. Verint Systems is trading at a lower price-to-earnings ratio than ModusLink Global Solutions, indicating that it is currently the more affordable of the two stocks.
This table compares ModusLink Global Solutions and Verint Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ModusLink Global Solutions||-5.92%||-36.62%||-8.36%|
Verint Systems beats ModusLink Global Solutions on 10 of the 12 factors compared between the two stocks.
About ModusLink Global Solutions
ModusLink Global Solutions, Inc. is a provider of supply chain and logistics services through its subsidiaries, ModusLink Corporation and ModusLink PTS, Inc. The Company provides services to companies in the consumer electronics, communications, computing, software, storage and retail industries. The Company operates through four segments: Americas, Asia, Europe and e-business. As of July 31, 2016, the Company operated in over 20 sites across North America, Europe and the Asia Pacific region. The Company’s Supply Chain Business operation’s solutions include material planning and factory supply; value-added warehousing and distribution; aftermarket services, including product returns management and product repair and recovery, and e-business, including e-commerce, contact center, entitlement management and financial management.
About Verint Systems
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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