Analyzing TDCX (NYSE:TDCX) & VerifyMe (NASDAQ:VRME)

VerifyMe (NASDAQ:VRME) and TDCX (NYSE:TDCX) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Profitability

This table compares VerifyMe and TDCX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VerifyMe	-13.39%	-20.35%	-13.09%
TDCX	18.24%	18.91%	15.99%

Analyst Ratings

This is a summary of recent recommendations for VerifyMe and TDCX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VerifyMe	0	0	2	0	3.00
TDCX	0	1	2	0	2.67

VerifyMe presently has a consensus target price of $2.85, suggesting a potential upside of 84.47%. TDCX has a consensus target price of $8.60, suggesting a potential upside of 21.13%. Given VerifyMe’s stronger consensus rating and higher probable upside, equities research analysts plainly believe VerifyMe is more favorable than TDCX.

Valuation and Earnings

This table compares VerifyMe and TDCX’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VerifyMe	$25.31 million	0.62	-$3.39 million	($0.35)	-4.41
TDCX	$499.28 million	2.06	$91.08 million	$0.62	11.45

TDCX has higher revenue and earnings than VerifyMe. VerifyMe is trading at a lower price-to-earnings ratio than TDCX, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

VerifyMe has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, TDCX has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Institutional & Insider Ownership

8.8% of VerifyMe shares are owned by institutional investors. Comparatively, 11.0% of TDCX shares are owned by institutional investors. 18.1% of VerifyMe shares are owned by insiders. Comparatively, 85.0% of TDCX shares are owned by 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

TDCX beats VerifyMe on 9 of the 12 factors compared between the two stocks.

About VerifyMe

VerifyMe, Inc., together with its subsidiary, PeriShip Global, LLC, operates as a technology solutions provider that specializes in products to connect brands with consumers and providing brands with end-to-end logistics management for their products. The company operates through two segments, VerifyMe Solutions and PeriShip Global Solutions. The VerifyMe Solutions segment offers technology solutions to connect brands with consumers allowing brand owners to gather business intelligence while engaging directly with their consumers. Its solutions provide brand protection and supply chain functions, such as counterfeit prevention, traceability, consumer engagement solutions, and authentication for labels, packaging, and products, as well as tamper-proof labels. The PeriShip Global Solutions segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment's products include PeriTrack customer dashboard, an integrated web portal tool gives its customers an in-depth look at their shipping activities based on real-time data. It also provides call center, pre-transit, post-delivery, and weather/traffic services. The company has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.

About TDCX

TDCX Inc., together with its subsidiaries, provides outsource contact center services for technology and other blue-chip companies in Singapore, Malaysia, Thailand, the Philippines, Japan, China, Spain, India, Colombia, South Korea, and Romania. It offers digital customer experience solutions, including after-sales service and customer support across various industry verticals, such as travel and hospitality, digital advertising and media, fast-moving consumer goods, technology, financial services, fintech, government and non-governmental organizations, gaming, e-commerce, and education. The company also provides sales and digital marketing services that help its clients to market their products and services to their potential customers in the business-to-consumer and business-to-business markets; and content monitoring and moderation services that create a safe and secure online environment for social media platforms by providing human interaction to content moderation services. In addition, it offers workspaces to its existing clients; and human resource and administration services. Further, the company provides omnichannel CX solutions, such as end-user support and troubleshooting for software and consumer electronic devices. The company was formerly known as TDCX Capital Pte Ltd and changed its name to TDCX Inc. in January 2021. TDCX Inc. was founded in 1995 and is headquartered in Singapore. TDCX Inc. operates as a subsidiary of Transformative Investments Pte Ltd.