VerifyMe (NASDAQ:VRME – Get Free Report) and ECARX (NASDAQ:ECX – Get Free Report) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
Insider and Institutional Ownership
8.8% of VerifyMe shares are held by institutional investors. 18.1% of VerifyMe shares are held by company insiders. Comparatively, 20.0% of ECARX 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 Recommendations
This is a summary of recent ratings for VerifyMe and ECARX, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VerifyMe | 0 | 0 | 2 | 0 | 3.00 |
| ECARX | 0 | 0 | 1 | 0 | 3.00 |
Risk and Volatility
VerifyMe has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, ECARX has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500.
Earnings & Valuation
This table compares VerifyMe and ECARX’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VerifyMe | $25.31 million | 0.64 | -$3.39 million | ($0.35) | -4.57 |
| ECARX | $657.10 million | 0.85 | -$132.42 million | ($0.38) | -4.37 |
VerifyMe has higher earnings, but lower revenue than ECARX. VerifyMe is trading at a lower price-to-earnings ratio than ECARX, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares VerifyMe and ECARX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VerifyMe | -13.39% | -20.35% | -13.09% |
| ECARX | -20.03% | N/A | -23.13% |
Summary
VerifyMe beats ECARX on 7 of the 13 factors compared between the two stocks.
About VerifyMe
VerifyMe, Inc., together with its subsidiary, PeriShip Global, LLC, operates as a technology solutions provider that specializes in products to connect brands with consumers and providing brands with end-to-end logistics management for their products. The company operates through two segments, VerifyMe Solutions and PeriShip Global Solutions. The VerifyMe Solutions segment offers technology solutions to connect brands with consumers allowing brand owners to gather business intelligence while engaging directly with their consumers. Its solutions provide brand protection and supply chain functions, such as counterfeit prevention, traceability, consumer engagement solutions, and authentication for labels, packaging, and products, as well as tamper-proof labels. The PeriShip Global Solutions segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment's products include PeriTrack customer dashboard, an integrated web portal tool gives its customers an in-depth look at their shipping activities based on real-time data. It also provides call center, pre-transit, post-delivery, and weather/traffic services. The company has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.
About ECARX
ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.
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