Gartner (NYSE:IT – Get Rating) and Veritec (OTCMKTS:VRTC – Get Rating) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
This table compares Gartner and Veritec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Gartner has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Veritec has a beta of -21.4, meaning that its stock price is 2,240% less volatile than the S&P 500.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gartner currently has a consensus target price of $359.00, indicating a potential upside of 18.68%. Given Gartner’s higher probable upside, equities analysts clearly believe Gartner is more favorable than Veritec.
Institutional and Insider Ownership
91.9% of Gartner shares are owned by institutional investors. 3.7% of Gartner shares are owned by company insiders. Comparatively, 51.8% of Veritec shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Gartner and Veritec’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gartner||$5.48 billion||4.37||$807.80 million||$9.99||30.28|
Gartner has higher revenue and earnings than Veritec. Veritec is trading at a lower price-to-earnings ratio than Gartner, indicating that it is currently the more affordable of the two stocks.
Gartner beats Veritec on 12 of the 13 factors compared between the two stocks.
Gartner, Inc. is a research and advisory company, which equips business leaders with insights, advice, and tools that help build organizations. It operates through the following segments: Research, Consulting, and Conferences. The Research segment provides executives with objective insights and advice through reports, briefings, proprietary tools, access to the firm’s research experts, peer networking services, and membership programs. The Consulting segment offers customized solutions to unique client needs through on-site, day-to-day support, and proprietary tools for measuring and improving IT performance. The Conferences segment offers business professionals the opportunity to learn, share, and network through conferences and peer-driven sessions. The company was founded by Gideon I. Gartner and Dave L. R. Stein in 1979 and is headquartered in Stamford, CT.
Veritec, Inc. engages in the development, sales, and licensing of products. It also provides services related to mobile banking solutions. The firm also operates in back-end cardholder transaction processing services for visa-branded card programs on behalf of its sponsoring bank. The company was founded on September 8, 1982 and is headquartered in Golden Valley, MN.
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