Comparing A10 Networks (NYSE:ATEN) and Versus Systems (NASDAQ:VS)

Versus Systems (NASDAQ:VS) and A10 Networks (NYSE:ATEN) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Versus Systems and A10 Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Versus Systems	N/A	-70.36%	-61.70%
A10 Networks	13.85%	23.63%	8.09%

Analyst Recommendations

This is a summary of current recommendations and price targets for Versus Systems and A10 Networks, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Versus Systems	1	0	0	0	1.00
A10 Networks	0	5	2	0	2.29

A10 Networks has a consensus price target of $30.88, indicating a potential upside of 18.37%. Given A10 Networks’ stronger consensus rating and higher probable upside, analysts plainly believe A10 Networks is more favorable than Versus Systems.

Insider and Institutional Ownership

60.7% of Versus Systems shares are held by institutional investors. Comparatively, 98.6% of A10 Networks shares are held by institutional investors. 0.2% of Versus Systems shares are held by insiders. Comparatively, 1.2% of A10 Networks shares are held 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.

Risk and Volatility

Versus Systems has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, A10 Networks has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Earnings & Valuation

This table compares Versus Systems and A10 Networks”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Versus Systems	$2.18 million	3.16	-$1.79 million	($0.35)	-3.17
A10 Networks	$290.56 million	6.52	$42.14 million	$0.60	43.47

A10 Networks has higher revenue and earnings than Versus Systems. Versus Systems is trading at a lower price-to-earnings ratio than A10 Networks, indicating that it is currently the more affordable of the two stocks.

Summary

A10 Networks beats Versus Systems on 13 of the 14 factors compared between the two stocks.

About Versus Systems

Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company offers eXtreme Engagement Online platform that is designed primarily for in-venue main-board work in stadiums and arenas; Filter Fan Cam (FFC) platform, an augmented reality filtering tool that can be used for mobile and in-venue applications; and Winfinite, which allows brands, media companies, and advertising agencies to reach out to customers directly on their mobile devices. It also offers business-to-business software platform that allows video game publishers, developers, and other interactive media content creators in-game prizing and rewards based on the completion of in-content challenges. In addition, the company provides XEO technology platform that offers online audience engagement. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.

About A10 Networks

A10 Networks, Inc. provides networking solutions in the Americas, Japan, rest of Asia Pacific, Europe, the Middle East, and Africa. The company offers Thunder Application Delivery Controller that provides advanced server load balancing; Thunder Carrier Grade Networking, which provides standards-compliant address and protocol translation services between varying types of internet protocol addresses; Thunder Secure Sockets Layer (SSL) Insight that decrypts SSL-encrypted traffic and forwards it to a third-party security device for deep packet inspection; and Thunder Convergent Firewall, which addresses multiple critical security capabilities in one package. It also provides intelligent management and automation tool comprising harmony controller that provides intelligent management, automation, and analytics for secure application delivery. In addition, the company offers A10 Defend Threat Control, a standalone SaaS platform; A10 Defend Orchestrator provides a centralized point of control for seamless distributed denial of service (DDoS) defense management and execution; A10 Defend Detector, a Netflow, Sflow, IPFIX-based DDoS detector used to easily manage the scale and heterogenous nature of SP networks; and A10 Defend Mitigator, a precision, automated, scalable, and intelligent DDoS mitigation solution. It delivers its solutions in optimized hardware appliances, bare metal software, containerized software, virtual appliances, and cloud-native software forms. The company serves cloud providers; cloud, telecommunications, and multiple system and cable service providers; government organizations; and enterprises in the telecommunications, technology, industrial, government, retail, financial, gaming, and education industries. It markets its products through sales organizations; and distribution channel partners, such as distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.