Reviewing Harte Hanks (NASDAQ:HHS) & Versant (NASDAQ:VSNT)

Versant (NASDAQ:VSNT) and Harte Hanks (NASDAQ:HHS) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

This table compares Versant and Harte Hanks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Versant	$6.69 billion	0.72	$930.00 million	$3.48	9.97
Harte Hanks	$159.57 million	0.22	-$810,000.00	($0.76)	-6.08

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

Profitability

This table compares Versant and Harte Hanks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Versant	N/A	N/A	N/A
Harte Hanks	-3.70%	-30.14%	-6.30%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Versant and Harte Hanks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Versant	0	7	1	0	2.12
Harte Hanks	1	0	0	0	1.00

Versant currently has a consensus target price of $43.40, suggesting a potential upside of 25.07%. Given Versant’s stronger consensus rating and higher possible upside, analysts clearly believe Versant is more favorable than Harte Hanks.

Institutional & Insider Ownership

33.8% of Harte Hanks shares are held by institutional investors. 0.1% of Versant shares are held by insiders. Comparatively, 9.6% of Harte Hanks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Versant beats Harte Hanks on 11 of the 13 factors compared between the two stocks.

About Versant

Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company’s products in developing and deploying software applications based on its products. The Company’s Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries. In addition to its product offerings, to assist users in their development and deployment of applications based on the Versant Object Database, FastObjects and db4o, it offers related professional services.

About Harte Hanks

Harte-Hanks, Inc. engages in the provision of marketing solutions. It specializes in consulting, data analytics, creative services, digital and social media, marketing strategy, marketing technology, and other related services. It supports a range of customers in the field of technology, travel and leisure, entertainment, pharmaceuticals, automotive, finance, and retail. The company was founded in 1923 and is headquartered in San Antonio, TX.