Advanced Energy Industries (NASDAQ:AEIS) and Veritec (OTCMKTS:VRTC) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Volatility & Risk
Advanced Energy Industries has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Veritec has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.
This table compares Advanced Energy Industries and Veritec’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advanced Energy Industries||$671.01 million||2.54||$137.86 million||$4.23||10.47|
Advanced Energy Industries has higher revenue and earnings than Veritec.
This table compares Advanced Energy Industries and Veritec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Energy Industries||13.18%||32.09%||22.88%|
This is a breakdown of current recommendations and price targets for Advanced Energy Industries and Veritec, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Energy Industries||0||2||4||0||2.67|
Advanced Energy Industries presently has a consensus target price of $70.40, indicating a potential upside of 58.99%. Given Advanced Energy Industries’ higher probable upside, analysts plainly believe Advanced Energy Industries is more favorable than Veritec.
Insider and Institutional Ownership
99.3% of Advanced Energy Industries shares are owned by institutional investors. 1.2% of Advanced Energy Industries shares are owned by insiders. Comparatively, 51.8% of Veritec shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Advanced Energy Industries beats Veritec on 10 of the 11 factors compared between the two stocks.
About Advanced Energy Industries
Advanced Energy Industries, Inc., together with its subsidiaries, designs, manufactures, sells, and supports power conversion and control products that transform electrical power into various usable forms. It offers process power systems, including direct current (DC), pulsed DC, low frequency, high voltage, and radio frequency (RF) power supplies, as well as matching networks and remote plasma sources for reactive gas applications and RF instrumentation. The company also provides power control modules and thermal instrumentation products for rapid thermal processing, chemical vapor deposition, crystal growing, and other semiconductor and solar applications, as well as in chemical processing, glass manufacturing, and other general industrial power applications; and high voltage products for various applications, including semiconductor wafer processing and metrology, scientific instrumentation, mass spectrometry, industrial printing, and analytical x-ray systems for industrial and analytical applications. In addition, it offers repair services, conversions, upgrades, and refurbishments and used equipment to companies. The company markets and sells its products through direct sales force, independent sales representatives, and distributors in the North America, Europe, and Asia. Advanced Energy Industries, Inc. was founded in 1981 and is headquartered in Fort Collins, Colorado.
Veritec, Inc., together with its subsidiaries, develops, markets, sells, and licenses products; and provides professional services related to mobile banking prepaid debit card solutions. The company provides Mobile Toggle Card Program, a debit based, pre-paid, and gift card solution to debit card issuers and sponsoring organizations; and blinx ON-OFF debit card-Visa prepaid card programs. It also enables card issuers and sponsors to issue debit, pre-paid, and gift cards under their own branded programs through the licensed use of the mobile banking platform and related professional services. In addition, the company offers blinxPay mobile wallet application, a payment processing system that enables customers to make purchases at participating merchants using funds loaded into their blinxPay virtual account. Further, its mobile banking solution enables member card programs to process and settle member rewards in open or closed loop processing environment; and offers back-end card processing services to the card issuing institutions for various cardholder transactions on the licensed platform. The company offers its products in the United States, Korea, Taiwan, and internationally. Veritec, Inc. was founded in 1982 and is based in Golden Valley, Minnesota.
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