Analyzing Vertex (NASDAQ:VERX) and Nayax (NASDAQ:NYAX)

Vertex (NASDAQ:VERX) and Nayax (NASDAQ:NYAX) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Vertex has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Nayax has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Vertex and Nayax, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex	0	4	8	1	2.77
Nayax	0	4	3	0	2.43

Vertex presently has a consensus price target of $50.73, suggesting a potential upside of 28.91%. Nayax has a consensus price target of $34.75, suggesting a potential downside of 16.29%. Given Vertex’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Vertex is more favorable than Nayax.

Profitability

This table compares Vertex and Nayax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertex	4.73%	24.92%	6.65%
Nayax	-3.62%	-7.32%	-2.63%

Valuation and Earnings

This table compares Vertex and Nayax”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertex	$666.78 million	9.34	-$13.09 million	($0.34)	-115.74
Nayax	$314.01 million	4.69	-$15.89 million	($0.16)	-259.44

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

Institutional & Insider Ownership

70.3% of Vertex shares are owned by institutional investors. Comparatively, 34.9% of Nayax shares are owned by institutional investors. 44.6% of Vertex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Vertex beats Nayax on 14 of the 15 factors compared between the two stocks.

About Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

About Nayax

Nayax Ltd., a fintech company, operates system and payment platform for multiple retailers in the United States, Europe, the United Kingdom, Australia, Israel, and rest of the world. The company offers AMIT 3.0, a machine-to-machine vending telemetry solution; Nayax Core, a management and monitoring software for vending machines and other unattended machines; MoMa, a mobile app for unattended machine; Tigapo back-office software suite, a cloud-based platform; EV Core, a smart, cloud-based management platform; Retail Management Cloud, a comprehensive attended retail management platform; Loyalty and Marketing Suite, a consumer engagement marketing and loyalty platform; Monyx Wallet, a digital wallet app enabling cashless payments with mobile phones; Weezmo, a consumer engagement and marketing platform; and Tigapo app, a proprietary mobile app to help family entertainment center businesses. It provides electric vehicle charging stations; VPOS Touch, a credit card reader cashless payment device; VPOS Fusion, a cashless payment card reader; ONYX, a contactless card reader and telemetry device; NOVA 156, an electronic cash register; DOT, a smart QR and barcode reader; UNO Plus and UNO 8, which are EMV and FeliCa contactless readers; EMV SOM, a PCI-PTS ready contactless EMV reader module; Nova Market, a cashless micro market and self-checkout solution; NOVA 55, an a handheld smart point of sale (POS) device; NOVA 45, a handheld mini smart terminals for attended POS; and Retail One, a universal retail solution that integrates directly with SAP. The company sells its products directly, as well as through resellers and distributors. It serves various verticals, including vending machines, coffee machines, unattended checkout counters, self-service kiosks, ticketing machines, car wash stations, gaming machines, amusement rides, laundromats, and EV charging stations. Nayax Ltd. was incorporated in 2005 and is headquartered in Herzliya, Israel.