Vivint Smart Home (NYSE:VVNT) vs. Verisk Analytics (NASDAQ:VRSK) Critical Contrast

Vivint Smart Home (NYSE:VVNT) and Verisk Analytics (NASDAQ:VRSK) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Profitability

This table compares Vivint Smart Home and Verisk Analytics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vivint Smart Home -31.15% N/A -14.49%
Verisk Analytics 23.78% 30.63% 10.93%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vivint Smart Home and Verisk Analytics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vivint Smart Home 0 1 4 0 2.80
Verisk Analytics 0 2 7 0 2.78

Vivint Smart Home presently has a consensus target price of $18.40, suggesting a potential upside of 66.52%. Verisk Analytics has a consensus target price of $222.22, suggesting a potential downside of 2.62%. Given Vivint Smart Home’s stronger consensus rating and higher probable upside, equities analysts clearly believe Vivint Smart Home is more favorable than Verisk Analytics.

Insider & Institutional Ownership

79.8% of Vivint Smart Home shares are held by institutional investors. Comparatively, 87.9% of Verisk Analytics shares are held by institutional investors. 1.6% of Vivint Smart Home shares are held by company insiders. Comparatively, 2.3% of Verisk Analytics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Vivint Smart Home has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Verisk Analytics has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares Vivint Smart Home and Verisk Analytics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vivint Smart Home $1.26 billion 1.83 -$595.20 million ($2.29) -4.83
Verisk Analytics $2.78 billion 13.21 $712.70 million $4.28 53.32

Verisk Analytics has higher revenue and earnings than Vivint Smart Home. Vivint Smart Home is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.

Summary

Verisk Analytics beats Vivint Smart Home on 12 of the 14 factors compared between the two stocks.

About Vivint Smart Home

Vivint Smart Home, Inc., together with its subsidiaries, engages in the sale, installation, servicing, and monitoring of smart home and security systems primarily in the United States and Canada. The company's smart home platform includes cloud-enabled smart home operating systems; Vivint Assist, an AI-driven smart home automation and assistance software; software-enabled smart home devices; and tech-enabled services to educate, manage, and support the smart home. It also offers other devices, including control panel, security cameras and smoke alarms, door and window sensors, door locks, motion and tilt sensors, glass break detectors, key fobs, medical pendants, carbon monoxide detectors, flood sensors, and lamp modules. The company's solutions enable subscribers to interact with various aspects of home with voice or mobile device, including engaging with people at front door, and viewing live and recorded video inside and outside homes; and control thermostats, locks, lights, and garage doors, as well as managing movement of families, friends, and strangers. As of March 31, 2020, its smart home platform had approximately 1.5 million subscribers and managed approximately 20 million in-home devices. It markets its products through direct-to-home, inside sales channels, and retail partnerships programs. The company was founded in 1999 and is headquartered in Provo, Utah.

About Verisk Analytics

Verisk Analytics, Inc. is a data analytics provider, which engages in the provision of data analytics for customers in insurance, energy markets and financial services. It operates through the following segments: Insurance, Energy & Specialized Markets, and Financial Services. The Insurance segment serves insurance customers and focuses on the prediction of loss, the selection and pricing of risk, and compliance. The Energy & Specialized Markets segment provides data analytics services. It also provides research and consulting services focusing on exploration strategies and screening, asset development and acquisition, commodity markets and corporate analysis. The Financial Services segment maintains bank account consortia to provide competitive benchmarking, decisioning algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators and merchants. The company was founded in 1971 and is headquartered in Jersey City, NJ.

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