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

Profitability

This table compares Verifone Systems and its rivals’ 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 -20.93% -51.75% -4.23%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Verifone Systems and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verifone Systems 1 13 3 0 2.12
Verifone Systems Competitors 678 4419 7432 166 2.56

Verifone Systems currently has a consensus target price of $19.27, suggesting a potential downside of 5.74%. As a group, “IT Services & Consulting” companies have a potential downside of 0.62%. Given Verifone Systems’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Verifone Systems has less favorable growth aspects than its rivals.

Volatility & Risk

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’ rivals have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Institutional and Insider Ownership

60.5% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.2% of Verifone Systems shares are owned by company insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Verifone Systems $1.86 billion $217.75 million -12.62
Verifone Systems Competitors $2.12 billion $367.66 million 17.04

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

Summary

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

Verifone Systems Company Profile

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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