Contrasting Unisys (NYSE:UIS) and VerifyMe (NASDAQ:VRME)

VerifyMe (NASDAQ:VRME) and Unisys (NYSE:UIS) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Profitability

This table compares VerifyMe and Unisys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VerifyMe	-7.18%	-10.86%	-7.12%
Unisys	-18.95%	-24.50%	1.39%

Institutional & Insider Ownership

8.8% of VerifyMe shares are owned by institutional investors. Comparatively, 86.9% of Unisys shares are owned by institutional investors. 24.1% of VerifyMe shares are owned by insiders. Comparatively, 2.7% of Unisys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares VerifyMe and Unisys”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VerifyMe	$25.31 million	0.51	-$3.39 million	($0.17)	-7.36
Unisys	$1.99 billion	0.19	-$430.70 million	($5.92)	-0.91

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for VerifyMe and Unisys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VerifyMe	0	0	1	0	3.00
Unisys	0	0	0	0	N/A

VerifyMe currently has a consensus target price of $1.50, suggesting a potential upside of 19.84%. Given VerifyMe’s higher possible upside, equities research analysts plainly believe VerifyMe is more favorable than Unisys.

Risk & Volatility

VerifyMe has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Unisys has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Summary

VerifyMe beats Unisys on 8 of the 13 factors compared between the two stocks.

About VerifyMe

VerifyMe, Inc., together with its subsidiary, PeriShip Global, LLC, operates as a technology solutions provider that specializes in products to connect brands with consumers and providing brands with end-to-end logistics management for their products. The company operates through two segments, VerifyMe Solutions and PeriShip Global Solutions. The VerifyMe Solutions segment offers technology solutions to connect brands with consumers allowing brand owners to gather business intelligence while engaging directly with their consumers. Its solutions provide brand protection and supply chain functions, such as counterfeit prevention, traceability, consumer engagement solutions, and authentication for labels, packaging, and products, as well as tamper-proof labels. The PeriShip Global Solutions segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment's products include PeriTrack customer dashboard, an integrated web portal tool gives its customers an in-depth look at their shipping activities based on real-time data. It also provides call center, pre-transit, post-delivery, and weather/traffic services. The company has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.