Analyzing Vertex (NASDAQ:VERX) and MIND C.T.I. (NASDAQ:MNDO)

Vertex (NASDAQ:VERX) and MIND C.T.I. (NASDAQ:MNDO) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Profitability

This table compares Vertex and MIND C.T.I.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertex	-5.83%	36.83%	7.02%
MIND C.T.I.	16.87%	14.09%	10.90%

Valuation and Earnings

This table compares Vertex and MIND C.T.I.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertex	$808.60 million	3.47	$7.21 million	($0.29)	-59.57
MIND C.T.I.	$19.46 million	0.91	$2.60 million	$0.16	5.51

Vertex has higher revenue and earnings than MIND C.T.I.. Vertex is trading at a lower price-to-earnings ratio than MIND C.T.I., indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

70.3% of Vertex shares are held by institutional investors. Comparatively, 24.3% of MIND C.T.I. shares are held by institutional investors. 42.3% of Vertex shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Vertex and MIND C.T.I., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex	1	6	6	0	2.38
MIND C.T.I.	1	0	0	0	1.00

Vertex presently has a consensus target price of $18.79, suggesting a potential upside of 8.75%. Given Vertex’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Vertex is more favorable than MIND C.T.I..

Risk & Volatility

Vertex has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, MIND C.T.I. has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Summary

Vertex beats MIND C.T.I. on 10 of the 14 factors compared between the two stocks.

About Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

About MIND C.T.I.

MIND C.T.I. Ltd., together with its subsidiaries, develops, markets, sells, and implements billing and customer care software solutions for communication service providers in the Americas, Europe, Israel, the Asia Pacific, and Africa. It operates in two segments, Billing and Related Services, and Messaging. The company offers billing and customer care solutions that support various services, such as voice, data, and content services, as well as prepaid, postpaid, and pay-in-advance payment models in a single platform. Its solutions also include a workflow engine to support the implementation of business processes, including subscriber registration, order management, trouble ticket, and debt collection; and a point of sale solution that covers dealer, store and cashier management, and sales cycle related activities. In addition, the company offers professional services comprising turnkey project delivery, customer support and maintenance, integration, customizations, and project management; and managed services, including day to day billing operational tasks. Further, it provides PhonEX ONE, a call management system that collects, records, and stores call information, which is used by organizations for telecom expense management, call accounting, traffic analysis, and fraud detection; and a mobile messaging platform. The company offers its products directly, as well as through distributors and resellers primarily to communication service providers, such as traditional wireline and wireless, voice over IP, broadband IP network operators, wireless internet service providers, LTE operators, cable operators, and mobile virtual network operators. MIND C.T.I. Ltd. was incorporated in 1995 and is headquartered in Yokneam Illit, Israel.