Intrusion (NASDAQ:INTZ – Get Free Report) and Virnetx (NASDAQ:VHC – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Insider and Institutional Ownership
19.4% of Intrusion shares are owned by institutional investors. Comparatively, 10.4% of Virnetx shares are owned by institutional investors. 10.1% of Intrusion shares are owned by insiders. Comparatively, 15.7% of Virnetx shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Intrusion and Virnetx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Intrusion | -191.24% | -178.06% | -99.59% |
| Virnetx | N/A | -92.46% | -66.74% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Intrusion | $5.79 million | 3.42 | -$9.06 million | ($0.55) | -1.47 |
| Virnetx | $114,000.00 | 421.90 | -$18.23 million | ($5.37) | -2.14 |
Intrusion has higher revenue and earnings than Virnetx. Virnetx is trading at a lower price-to-earnings ratio than Intrusion, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Intrusion has a beta of -1.55, suggesting that its stock price is 255% less volatile than the S&P 500. Comparatively, Virnetx has a beta of 2.28, suggesting that its stock price is 128% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Intrusion and Virnetx, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Intrusion | 1 | 2 | 1 | 0 | 2.00 |
| Virnetx | 1 | 0 | 0 | 0 | 1.00 |
Intrusion currently has a consensus target price of $5.25, indicating a potential upside of 550.56%. Given Intrusion’s stronger consensus rating and higher possible upside, research analysts plainly believe Intrusion is more favorable than Virnetx.
Summary
Intrusion beats Virnetx on 8 of the 14 factors compared between the two stocks.
About Intrusion
Intrusion Inc., a cybersecurity company in the United States. The company offers its customers access to threat intelligence database, which contains the historical data, known associations, and reputational behavior of Internet Protocol addresses. It offers INTRUSION Shield, a zero trust reputation-based Software as a Service solution that inspects and kills dangerous network connections. The company also provides INTRUSION TraceCop, a big data tool that contains an inventory of network selectors and enrichments to support forensic investigations; and INTRUSION Savant, a network monitoring solution that uses the data available in TraceCop to identify suspicious traffic in real-time. In addition, it engages in the provision of pre-and post-sales support services, such as network security design, system installation, and technical consulting services. The company serves US federal government entities, state and local government entities, and companies ranging from mid-market to large enterprises through a direct sales force and value-added resellers. The company was formerly known as Intrusion.com, Inc. and changed its name to Intrusion Inc. in November 2001. Intrusion Inc. was founded in 1983 and is headquartered in Plano, Texas.
About Virnetx
VirnetX Holding Corporation, through its subsidiary VirnetX, Inc., operates as an Internet security software and technology company primarily in the United States. The company develops software and technology solutions, including secure domain name registry and GABRIEL Connection Technology that are designed to secure communications over the Internet using zero trust network access. It also offers a portfolio of licenses and services, such as VirnetX One, a security-as-a-service platform that protects enterprise applications, services, and infrastructure from cyber-attacks; GABRIEL Connection Technology software development kit to assist with rapid integration of its techniques into existing software implementations; and War Room software that offers safe and secure video conferencing meeting environment where sensitive communications and data is invisible to those not authorized to view it. In addition, the company provides GABRIEL Collaboration Suite that enables seamless and secure cross-platform communications between users’ devices. It serves domain infrastructure and communication service providers, and system integrators; and enterprise customers, developers, and original equipment manufacturers of chips, servers, desktops, smart phones, tablets, laptops, net books, and other devices in the IP-telephony, mobility, fixed-mobile convergence, and unified communications markets. The company was incorporated in 2005 and is headquartered in Zephyr Cove, Nevada.
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