ECARX (NASDAQ:ECX – Get Free Report) and VerifyMe (NASDAQ:VRME – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Profitability
This table compares ECARX and VerifyMe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ECARX | -20.03% | N/A | -23.13% |
| VerifyMe | -13.39% | -20.35% | -13.09% |
Valuation & Earnings
This table compares ECARX and VerifyMe’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ECARX | $4.67 billion | 0.12 | -$132.42 million | ($0.38) | -4.29 |
| VerifyMe | $25.31 million | 0.65 | -$3.39 million | ($0.35) | -4.66 |
Analyst Recommendations
This is a breakdown of current ratings for ECARX and VerifyMe, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ECARX | 0 | 0 | 1 | 0 | 3.00 |
| VerifyMe | 0 | 0 | 2 | 0 | 3.00 |
ECARX presently has a consensus target price of $10.00, indicating a potential upside of 513.50%. VerifyMe has a consensus target price of $2.85, indicating a potential upside of 74.85%. Given ECARX’s higher probable upside, equities analysts clearly believe ECARX is more favorable than VerifyMe.
Risk and Volatility
ECARX has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500. Comparatively, VerifyMe has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
Insider & Institutional Ownership
8.8% of VerifyMe shares are held by institutional investors. 20.0% of ECARX shares are held by insiders. Comparatively, 18.1% of VerifyMe shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
VerifyMe beats ECARX on 8 of the 13 factors compared between the two stocks.
About ECARX
ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.
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.
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