Head-To-Head Comparison: Verint Systems (VRNT) and Medidata Solutions (MDSO)

Medidata Solutions (NASDAQ: MDSO) and Verint Systems (NASDAQ:VRNT) are both mid-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Earnings and Valuation

This table compares Medidata Solutions and Verint Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Medidata Solutions $508.77 million 8.32 $76.83 million $0.62 116.68
Verint Systems $1.08 billion 2.22 $102.91 million ($0.51) -75.00

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

Profitability

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

Net Margins Return on Equity Return on Assets
Medidata Solutions 7.07% 11.14% 5.49%
Verint Systems -2.94% 9.76% 4.24%

Institutional & Insider Ownership

95.5% of Verint Systems shares are held by institutional investors. 5.8% of Medidata Solutions shares are held by company insiders. Comparatively, 1.3% of Verint Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Medidata Solutions has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Medidata Solutions and Verint Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medidata Solutions 0 1 10 0 2.91
Verint Systems 1 2 4 0 2.43

Medidata Solutions presently has a consensus target price of $78.45, suggesting a potential upside of 8.45%. Verint Systems has a consensus target price of $43.86, suggesting a potential upside of 14.66%. Given Verint Systems’ higher possible upside, analysts clearly believe Verint Systems is more favorable than Medidata Solutions.

Summary

Medidata Solutions beats Verint Systems on 9 of the 13 factors compared between the two stocks.

About Medidata Solutions

Medidata Solutions Inc. (Medidata) is a provider of cloud-based solutions for life sciences. The Company provides cloud-based solutions for clinical research in life sciences, offering platform technology that focuses on the clinical development. The Company’s plan study addresses three areas to ensure optimal study design, grant development and negotiation, and investigator payments. Study Design Optimization enables customers to gain visibility into the impact of protocol elements on resource and trial endpoints. Grants Manager compares specific industry benchmarks and analytics, using industry’s database of negotiated procedure costs, to support appropriate grants to investigator sites and automated negotiations with multiple investigator sites. Payments enables customers to establish a global investigator payment strategy and process to automate payment calculation, distribution and reporting, including tax and currency exchange calculations.

About Verint Systems

Verint Systems Inc. offers Actionable Intelligence solutions. The Company delivers its Actionable Intelligence solutions through two operating segments: Customer Engagement Solutions and Cyber Intelligence Solutions. It is a provider of customer engagement software and services that can be deployed on-premises or in the cloud. Its Customer Engagement vision is powered by its Actionable Intelligence platform to generate intelligence from structured and unstructured data. It offers solutions that help organizations empower their customers and employees through intelligence that can be shared enterprise-wide. It is a provider of security and intelligence data mining software. Its solutions are used for a range of applications, including predictive intelligence, advanced and complex investigations, security threat analysis, and electronic data and physical assets protection, as well as for generating legal evidence and preventing criminal activity and terrorism.

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