Analyzing KORE Group (NYSE:KORE) & Verra Mobility (NASDAQ:VRRM)

Verra Mobility (NASDAQ:VRRM) and KORE Group (NYSE:KORE) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Verra Mobility and KORE Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verra Mobility	13.38%	55.59%	10.83%
KORE Group	-27.37%	N/A	-18.41%

Institutional & Insider Ownership

57.5% of KORE Group shares are held by institutional investors. 1.3% of Verra Mobility shares are held by insiders. Comparatively, 33.5% of KORE Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Verra Mobility and KORE Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verra Mobility	$979.08 million	0.67	$136.63 million	$0.82	5.26
KORE Group	$285.95 million	0.57	-$62.98 million	($3.86)	-2.38

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

Volatility and Risk

Verra Mobility has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, KORE Group has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Verra Mobility and KORE Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verra Mobility	3	7	0	0	1.70
KORE Group	1	1	0	0	1.50

Verra Mobility currently has a consensus price target of $6.83, indicating a potential upside of 58.55%. KORE Group has a consensus price target of $5.00, indicating a potential downside of 45.56%. Given Verra Mobility’s stronger consensus rating and higher possible upside, equities analysts clearly believe Verra Mobility is more favorable than KORE Group.

Summary

Verra Mobility beats KORE Group on 10 of the 13 factors compared between the two stocks.

About Verra Mobility

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Australia, Canada, and Europe. It operates through three segments: Commercial Services, Government Solutions, and Parking Solutions. The Commercial Services segment provides automated toll and violations management, and title and registration services to rental car companies, fleet management companies, and other large fleet owners. The Government Solutions segment offers automated safety solutions to national, state, and local government agencies, including services and technologies that enable photo enforcement through road safety cameras to detect and process traffic violations for red-light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Parking Solutions segment provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities, and transportation hubs. Verra Mobility Corporation was incorporated in 2016 and is headquartered in Mesa, Arizona.

About KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company’s products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.