Verint Systems (NASDAQ:VRNT) versus Adobe (NASDAQ:ADBE) Financial Review

Adobe (NASDAQ:ADBEGet Free Report) and Verint Systems (NASDAQ:VRNTGet Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Institutional and Insider Ownership

81.8% of Adobe shares are held by institutional investors. Comparatively, 94.9% of Verint Systems shares are held by institutional investors. 0.2% of Adobe shares are held by insiders. Comparatively, 1.3% of Verint Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Adobe and Verint Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adobe 3 11 14 1 2.45
Verint Systems 1 7 1 0 2.00

Adobe currently has a consensus price target of $428.96, indicating a potential upside of 33.95%. Verint Systems has a consensus price target of $26.33, indicating a potential upside of 28.39%. Given Adobe’s stronger consensus rating and higher probable upside, research analysts clearly believe Adobe is more favorable than Verint Systems.

Profitability

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

Net Margins Return on Equity Return on Assets
Adobe 30.01% 57.54% 24.79%
Verint Systems 6.87% 11.06% 4.37%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adobe $23.18 billion 5.78 $5.56 billion $16.05 19.95
Verint Systems $893.84 million 1.39 $82.27 million $0.71 28.89

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

Volatility and Risk

Adobe has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Summary

Adobe beats Verint Systems on 11 of the 15 factors compared between the two stocks.

About Adobe

(Get Free Report)

Adobe Inc., together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform. Its flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, students, workers, marketers, educators, enthusiasts, and communicators. The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize, and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, and executives across the C-suite. The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development, and high-end printing, as well as Advertising Cloud offerings. It also provides consulting, technical support, and learning services. The company offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website at adobe.com. It also distributes products and services through distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and original equipment manufacturers. The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018. Adobe Inc. was founded in 1982 and is headquartered in San Jose, California.

About Verint Systems

(Get Free Report)

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.

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