Critical Contrast: VerifyMe (NASDAQ:VRME) & IDEX Biometrics ASA (NASDAQ:IDBA)

Posted by Defense World Staff on Jun 9th, 2023

VerifyMe (NASDAQ:VRME – Get Rating) and IDEX Biometrics ASA (NASDAQ:IDBA – Get Rating) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Risk and Volatility

VerifyMe has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, IDEX Biometrics ASA has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500.

Profitability

This table compares VerifyMe and IDEX Biometrics ASA’s net margins, return on equity and return on assets.

Net Margins	Return on Equity	Return on Assets
VerifyMe	-58.16%	-21.10%	-14.87%
IDEX Biometrics ASA	-749.33%	-166.15%	-133.86%

Valuation and Earnings

This table compares VerifyMe and IDEX Biometrics ASA’s revenue, earnings per share (EPS) and valuation.

Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VerifyMe	$19.58 million	0.70	-$14.40 million	($1.75)	-0.83
IDEX Biometrics ASA	$4.09 million	19.25	-$32.66 million	($1.96)	-2.58

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

Insider and Institutional Ownership

5.7% of VerifyMe shares are held by institutional investors. Comparatively, 0.0% of IDEX Biometrics ASA shares are held by institutional investors. 18.1% of VerifyMe shares are held by company insiders. Comparatively, 1.8% of IDEX Biometrics ASA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for VerifyMe and IDEX Biometrics ASA, as provided by MarketBeat.

Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VerifyMe	0	0	2	0	3.00
IDEX Biometrics ASA	0	0	0	0	N/A

VerifyMe presently has a consensus target price of $4.50, indicating a potential upside of 208.22%. Given VerifyMe’s higher probable upside, equities analysts plainly believe VerifyMe is more favorable than IDEX Biometrics ASA.

Summary

VerifyMe beats IDEX Biometrics ASA on 11 of the 13 factors compared between the two stocks.

About VerifyMe

(Get Rating)

VerifyMe, Inc. engages in the provision of software driven predictive analytics logistics. It operates under the PeriShip Global Solutions and VerifyMe Solutions segments. The PeriShip Global Solutions segment offers a value-added service provider for time and temperature sensitive parcel management. The VerifyMe Solutions segment specializes in solutions that connect brands with consumers through their products. The company was founded by Norman A. Gardner on November 10, 1999 and is headquartered in Lake Mary, FL.

About IDEX Biometrics ASA

(Get Rating)

IDEX Biometrics ASA engages in the design, development, and sale of fingerprint authentication solutions in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific regions. The company's fingerprint authentication solutions are used primarily in contactless financial payment, access control, and smart cards, as well as card-based devices for the storage of digital currencies. It primarily serves manufacturers of smart cards for financial payment applications and biometric payment card markets. IDEX Biometrics ASA was incorporated in 1996 and is headquartered in Oslo, Norway.

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