Comparing Versant (NASDAQ:VSNT) & Optimum Communications (NYSE:OPTU)

Optimum Communications (NYSE:OPTU) and Versant (NASDAQ:VSNT) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Earnings and Valuation

This table compares Optimum Communications and Versant”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Optimum Communications	$8.38 billion	0.02	-$1.87 billion	($10.39)	-0.06
Versant	$6.69 billion	0.65	$930.00 million	$3.48	9.03

Versant has lower revenue, but higher earnings than Optimum Communications. Optimum Communications is trading at a lower price-to-earnings ratio than Versant, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Optimum Communications and Versant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Optimum Communications	-58.15%	N/A	-0.70%
Versant	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Optimum Communications and Versant, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Optimum Communications	4	5	0	0	1.56
Versant	1	6	2	1	2.30

Optimum Communications currently has a consensus target price of $0.92, indicating a potential upside of 39.29%. Versant has a consensus target price of $42.29, indicating a potential upside of 34.54%. Given Optimum Communications’ higher possible upside, research analysts clearly believe Optimum Communications is more favorable than Versant.

Insider & Institutional Ownership

54.8% of Optimum Communications shares are held by institutional investors. 43.4% of Optimum Communications shares are held by insiders. Comparatively, 0.1% of Versant shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Versant beats Optimum Communications on 9 of the 13 factors compared between the two stocks.

About Optimum Communications

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to approximately five million residential and business customers. The company’s video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. It also provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. In addition, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Further, it provides business e-mail, hosted private branch exchange, web space storage, and network security monitoring; and international calling and toll free numbers. Additionally, the company offers audience-based and IP-authenticated cross-screen advertising solutions; and television and digital advertising services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. The company was incorporated in 2015 and is headquartered in Long Island City, New York. Altice USA, Inc. is a subsidiary of Next Alt. S.a.r.l.

About Versant

Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company’s products in developing and deploying software applications based on its products. The Company’s Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries. In addition to its product offerings, to assist users in their development and deployment of applications based on the Versant Object Database, FastObjects and db4o, it offers related professional services.