Analyzing Vertex (NASDAQ:VERX) and Resonate Blends (OTCMKTS:KOAN)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertex	$687.06 million	8.78	-$13.09 million	($0.29)	-131.55
Resonate Blends	$20,000.00	7.81	-$1.42 million	($0.05)	-0.02

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex	0	4	8	1	2.77
Resonate Blends	0	0	0	0	0.00

Vertex currently has a consensus price target of $50.73, suggesting a potential upside of 32.97%. Given Vertex’s stronger consensus rating and higher possible upside, analysts plainly believe Vertex is more favorable than Resonate Blends.

Volatility & Risk

Vertex has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Resonate Blends has a beta of 3.17, indicating that its stock price is 217% more volatile than the S&P 500.

Profitability

This table compares Vertex and Resonate Blends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertex	4.73%	24.92%	6.65%
Resonate Blends	N/A	N/A	-80.02%

Insider and Institutional Ownership

70.3% of Vertex shares are held by institutional investors. Comparatively, 7.4% of Resonate Blends shares are held by institutional investors. 44.6% of Vertex shares are held by insiders. Comparatively, 50.0% of Resonate Blends shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Vertex beats Resonate Blends on 11 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 Resonate Blends

Resonate Blends, Inc., a cannabis holding company, provides cannabis wellness lifestyle products. The company offers Calm to quiet the mind and ease into a gentle sense of wellbeing; Wonder, a THC offering to bring back the youthful sense; Love to reduce barriers to intimacy, stimulate personal connections, and increase tactile sensation; Create to stimulate senses, spark imagination, and channel inner muse; Play to become fully immersed in the moment and the people around; Delight to open up senses; and Sleep for helping to fall asleep. The company was formerly known as Textmunication Holdings, Inc. and changed its name to Resonate Blends, Inc. in December 2019. Resonate Blends, Inc. is based in Calabasas, California.