Verint Systems (NASDAQ: VRNT) is one of 187 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare Verint Systems to similar companies based on the strength of its dividends, valuation, earnings, risk, institutional ownership, analyst recommendations and profitability.

Institutional and Insider Ownership

93.4% of Verint Systems shares are held by institutional investors. Comparatively, 61.4% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.3% of Verint Systems shares are held by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Verint Systems and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Verint Systems $1.06 billion -$29.38 million -158.20
Verint Systems Competitors $2.79 billion $289.83 million 348.26

Verint Systems’ peers have higher revenue and earnings than Verint Systems. Verint Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Verint Systems has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Verint Systems’ peers have a beta of 1.12, meaning that their average stock price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Verint Systems and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verint Systems 0 2 3 0 2.60
Verint Systems Competitors 732 4673 7433 166 2.54

Verint Systems currently has a consensus price target of $47.60, suggesting a potential upside of 20.35%. As a group, “IT Services & Consulting” companies have a potential upside of 2.57%. Given Verint Systems’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Verint Systems is more favorable than its peers.

Profitability

This table compares Verint Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verint Systems -1.41% 9.90% 4.29%
Verint Systems Competitors -20.54% -270.48% -4.59%

Summary

Verint Systems beats its peers on 8 of the 13 factors compared.

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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