Critical Survey: Sterling Check (NASDAQ:STER) vs. Versus Systems (NASDAQ:VS)

Versus Systems (NASDAQ:VSGet Free Report) and Sterling Check (NASDAQ:STERGet Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Risk and Volatility

Versus Systems has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500. Comparatively, Sterling Check has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Earnings and Valuation

This table compares Versus Systems and Sterling Check’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Versus Systems $270,000.00 4.42 -$10.51 million ($99.52) -0.02
Sterling Check $719.64 million 2.11 -$120,000.00 N/A N/A

Sterling Check has higher revenue and earnings than Versus Systems.

Profitability

This table compares Versus Systems and Sterling Check’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Versus Systems -3,849.52% -154.16% -119.91%
Sterling Check -0.02% 9.47% 4.91%

Analyst Recommendations

This is a summary of recent ratings and target prices for Versus Systems and Sterling Check, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Versus Systems 0 1 0 0 2.00
Sterling Check 0 5 1 0 2.17

Sterling Check has a consensus price target of $15.30, suggesting a potential downside of 1.23%. Given Sterling Check’s stronger consensus rating and higher possible upside, analysts clearly believe Sterling Check is more favorable than Versus Systems.

Insider and Institutional Ownership

60.7% of Versus Systems shares are held by institutional investors. Comparatively, 84.3% of Sterling Check shares are held by institutional investors. 20.1% of Versus Systems shares are held by company insiders. Comparatively, 8.2% of Sterling Check shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Sterling Check beats Versus Systems on 10 of the 13 factors compared between the two stocks.

About Versus Systems

(Get Free Report)

Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company offers eXtreme Engagement Online platform that is designed primarily for in-venue main-board work in stadiums and arenas; Filter Fan Cam (FFC) platform, an augmented reality filtering tool that can be used for mobile and in-venue applications; and Winfinite, which allows brands, media companies, and advertising agencies to reach out to customers directly on their mobile devices. It also offers business-to-business software platform that allows video game publishers, developers, and other interactive media content creators in-game prizing and rewards based on the completion of in-content challenges. In addition, the company provides XEO technology platform that offers online audience engagement. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.

About Sterling Check

(Get Free Report)

Sterling Check Corp. provides technology-enabled background and identity verification services in the United States, Canada, Europe, the Middle East and Africa, and the Asia Pacific. The company offers identity verification services, such as telecom and device verification, identification document verification, facial recognition with biometric matching, social security number verification, and live video chat identification proofing; fingerprinting; background checks, including criminal record checks, sex offender registries, civil court records, motor vehicle and driving license records, executive investigations, credit reports, social media searches, and contingent workforce solutions; liens, judgments, and bankruptcies; and sanctions, risk, and compliance checks. It also provides credential verification services, which include employment verification, education verification, credential verification, professional reference checks, and department of transportation; drug and health screening; onboarding solutions, including Sterling I-9 that integrates a suite of screening and onboarding services and onboarding forms; and workforce, medical license, and motor vehicle records monitoring solutions. The company's services are delivered through its cloud-based technology platform that empowers organizations with real-time and data-driven insights to conduct and manage their employment screening programs. It serves a client base in a range of industries, such as healthcare, gig economy, financial and business services, industrials, retail, contingent, technology, media and entertainment, transportation and logistics, hospitality, education, and government. The company was formerly known as Sterling Ultimate Parent Corp. and changed its name to Sterling Check Corp. in August 2021. Sterling Check Corp. was founded in 1975 and is headquartered in Independence, Ohio.

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