Veritec (OTCMKTS:VRTC – Get Rating) and Franklin Covey (NYSE:FC – Get Rating) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Profitability
This table compares Veritec and Franklin Covey’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veritec | -201.65% | N/A | -460.19% |
| Franklin Covey | 6.93% | 18.48% | 6.53% |
Valuation and Earnings
This table compares Veritec and Franklin Covey’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veritec | $350,000.00 | 2.06 | -$510,000.00 | ($0.03) | -0.60 |
| Franklin Covey | $276.11 million | 1.94 | $18.43 million | $1.34 | 28.79 |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Veritec and Franklin Covey, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veritec | 0 | 0 | 0 | 0 | N/A |
| Franklin Covey | 0 | 0 | 3 | 0 | 3.00 |
Franklin Covey has a consensus price target of $72.00, suggesting a potential upside of 86.63%. Given Franklin Covey’s higher probable upside, analysts plainly believe Franklin Covey is more favorable than Veritec.
Volatility & Risk
Veritec has a beta of -22.63, suggesting that its share price is 2,363% less volatile than the S&P 500. Comparatively, Franklin Covey has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
Institutional & Insider Ownership
68.1% of Franklin Covey shares are owned by institutional investors. 51.8% of Veritec shares are owned by insiders. Comparatively, 12.9% of Franklin Covey shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Franklin Covey beats Veritec on 11 of the 13 factors compared between the two stocks.
About Veritec
Veritec, Inc. engages in the development, sales, and licensing of products. It also provides services related to mobile banking solutions. The firm also operates in back-end cardholder transaction processing services for visa-branded card programs on behalf of its sponsoring bank. The company was founded on September 8, 1982 and is headquartered in Golden Valley, MN.
About Franklin Covey
Franklin Covey Co. engages in organizational performance improvement. It operates through the following segments: Direct Offices, International Licensees, Education Practice, and Corporate and Other. The Direct Offices segment includes sales personnel that serve the United States and Canada. The International Licensees segment focuses on international licensees’ royalty revenues. The Education Practice is involved in domestic and international education practice operations. The Corporate and Other segment refers to corporate and other information including royalty revenue from Franklin Planner Corporation. The company was founded by Brent L. Bishop, Stephen R. Covey, and Hyrum Wayne Smith in 1983 and is headquartered in Salt Lake City, UT.
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