Quarterhill (OTCMKTS:QTRHF) and VirnetX (NYSE:VHC) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.
Insider & Institutional Ownership
28.0% of VirnetX shares are owned by institutional investors. 13.1% of VirnetX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Quarterhill has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, VirnetX has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
Earnings and Valuation
This table compares Quarterhill and VirnetX’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quarterhill||$146.72 million||1.13||$10.53 million||N/A||N/A|
Quarterhill has higher revenue and earnings than VirnetX.
This table compares Quarterhill and VirnetX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Quarterhill and VirnetX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Quarterhill currently has a consensus target price of $3.13, indicating a potential upside of 124.61%. Given Quarterhill’s higher probable upside, research analysts plainly believe Quarterhill is more favorable than VirnetX.
VirnetX beats Quarterhill on 6 of the 11 factors compared between the two stocks.
Quarterhill Inc. focuses on acquisition and management of technology companies that provides products and services worldwide. Its Licensing segment includes patents relating to 3D television, semiconductor manufacturing and packaging, medical stent, intelligent personal assistant, enhanced image processing, streaming video, non-volatile flash and other memory, semiconductor clocking, LED lighting, and various other technologies; automotive headlight assemblies, phased loop semiconductor licensing, microcontrollers applicable to safety-critical aerospace, computer gaming, CMOS image sensors, building automation, and smart meter monitoring; and medical, industrial, and automotive applications. The company's Intelligent Systems segment provides integrated systems and solutions, such as automated truck weigh stations; toll road systems and equipment; traffic management and safety systems; VectorSense, a tire sensor suite; Vehicle Information-In-Motion, a traffic intelligence system; integrated traffic control systems; permanent and portable slow speed weigh-in-motion systems; portable wheel load scales; traffic data collection products; vehicle and axle detection equipment; and automated vehicle identification, and other hardware and software products for the intelligent transportation systems industry. This segment serves through direct salespeople, distributors, agents, other contractors, and systems integrators. Its Enterprise Software segment provides enterprise asset management software solutions to asset intensive industries through its salesforce over the Internet. Its offerings include WorkAlign, a product suite, which consists of integrated products, such as scheduler, IIoT, mobile for EAM, maintenance budgeting, warranty tracker, and analytics; and consulting services. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Kitchener, Canada.
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, as well as enable organizations and individuals to establish communities of secure, registered users, and transmit information between various devices, networks, and operating systems. These secure network communities are designed to support content applications, such as instant messaging, voice over Internet protocol, mobile services, streaming video, file transfer, and remote desktop. It also offers a portfolio of licenses and services, such as VirnetX technology licensing; GABRIEL Connection Technology software development kit, including object libraries, sample code, testing and quality assurance tools, and supporting documentation required for customers to implement the company's technology; secure domain name registrar service; registrar server software; connection server software; relay server software; and secure domain name master registry and connection, and technical support services. In addition, the company provides GABRIEL Collaboration Suite that enables seamless and secure cross-platform communications between users' devices. The company serves domain infrastructure and communication service providers, and system integrators; and enterprise customers, developers, and original equipment manufacturers of chips, servers, smart phones, tablets, e-Readers, laptops, net books, and other devices in the IP-telephony, mobility, fixed-mobile convergence, and unified communications markets. VirnetX Holding Corporation was incorporated in 2005 and is based in Zephyr Cove, Nevada.
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