Verifone Systems (NYSE: PAY) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its competitors? We will compare Verifone Systems to similar businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Verifone Systems and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verifone Systems 1 13 3 0 2.12
Verifone Systems Competitors 669 4381 7382 165 2.56

Verifone Systems presently has a consensus target price of $19.27, suggesting a potential downside of 7.81%. As a group, “IT Services & Consulting” companies have a potential upside of 1.41%. Given Verifone Systems’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Verifone Systems has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Verifone Systems and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Verifone Systems $1.86 billion $217.75 million -12.90
Verifone Systems Competitors $2.14 billion $366.36 million 15.67

Verifone Systems’ competitors have higher revenue and earnings than Verifone Systems. Verifone Systems is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

60.2% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.2% of Verifone Systems shares are held by insiders. Comparatively, 17.1% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Verifone Systems and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verifone Systems -9.76% 11.19% 3.72%
Verifone Systems Competitors -20.74% -45.05% -4.00%

Risk and Volatility

Verifone Systems has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Verifone Systems’ competitors have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Summary

Verifone Systems competitors beat Verifone Systems on 8 of the 13 factors compared.

About Verifone Systems

VeriFone Systems, Inc. offers payments and commerce solutions. The Company is engaged in designing, manufacturing, marketing and supplying a range of payment solutions and complementary services. It provides solutions and services for the retail point-of-sale (POS) that enable various forms of commerce. The Company’s segments include Verifone Systems and Verifone Services. The Verifone Systems segment delivers point of sale electronic payment devices that run the operating systems, security and encryption software, and certified payment software for both payments and commerce. The Verifone Services segment delivers device-related leasing and maintenance, payment transaction routing and reporting, and commerce based services, such as advertising on digital screens. The Company operates in various sectors, such as financial services, retail, petroleum, restaurant, hospitality, taxi, transportation and healthcare.

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