Critical Analysis: Verint Systems (NASDAQ:VRNT) vs. Elcom International (OTCMKTS:ELCO)

Elcom International (OTCMKTS:ELCO) and Verint Systems (NASDAQ:VRNT) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Elcom International has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares Elcom International and Verint Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elcom International	N/A	N/A	N/A
Verint Systems	6.87%	11.06%	4.37%

Institutional and Insider Ownership

95.0% of Verint Systems shares are owned by institutional investors. 13.6% of Elcom International shares are owned by company insiders. Comparatively, 1.3% of Verint Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Elcom International and Verint Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elcom International	N/A	N/A	N/A	N/A	N/A
Verint Systems	$909.19 million	1.35	$82.27 million	$0.71	28.55

Verint Systems has higher revenue and earnings than Elcom International.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Elcom International and Verint Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elcom International	0	0	0	0	0.00
Verint Systems	1	7	1	0	2.00

Verint Systems has a consensus price target of $26.33, suggesting a potential upside of 29.91%. Given Verint Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Verint Systems is more favorable than Elcom International.

Summary

Verint Systems beats Elcom International on 9 of the 10 factors compared between the two stocks.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.

About Verint Systems

Verint Systems Inc. provides customer engagement solutions worldwide. It offers forecasting and scheduling, channels and routing, knowledge management, fraud and security solutions, quality and compliance, analytics and insights, real-time assistance, self-services, financial compliance, and voice pf the consumer solutions. The company provides Verint Open platform designed to help brands increase CX automation across all touchpoints between organization and customers in the contact center, back office, branch, web sites, and mobile apps. It serves banking, insurance, public, retail, and telecommunication industries. Verint Systems Inc. was incorporated in 1994 and is headquartered in Melville, New York.