Glu Mobile (NASDAQ: VRSN) and Verisign (NASDAQ:VRSN) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
54.2% of Glu Mobile shares are held by institutional investors. Comparatively, 93.3% of Verisign shares are held by institutional investors. 5.8% of Glu Mobile shares are held by insiders. Comparatively, 0.9% of Verisign shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Glu Mobile and Verisign’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Glu Mobile and Verisign’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Glu Mobile||$286.83 million||3.65||-$97.57 million||($0.51)||-14.47|
|Verisign||$1.17 billion||16.76||$457.24 million||$3.68||43.53|
Verisign has higher revenue and earnings than Glu Mobile. Glu Mobile is trading at a lower price-to-earnings ratio than Verisign, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and target prices for Glu Mobile and Verisign, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Glu Mobile presently has a consensus price target of $6.30, indicating a potential downside of 14.63%. Verisign has a consensus price target of $140.25, indicating a potential downside of 12.45%. Given Verisign’s higher possible upside, analysts clearly believe Verisign is more favorable than Glu Mobile.
Volatility & Risk
Glu Mobile has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Verisign has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
Verisign beats Glu Mobile on 9 of the 14 factors compared between the two stocks.
Glu Mobile Company Profile
Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles in four genres, including home décor, sports and action, fashion and celebrity, and time management. It creates games based on its own brands, including Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, and QuizUp. The company also creates games based on third-party licensed brands, such as Restaurant Dash with Gordon Ramsay and Kim Kardashian; and Hollywood, MLB Tap Sports Baseball, and Racing Rivals. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts worldwide. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was incorporated in 2001 and is headquartered in San Francisco, California.
Verisign Company Profile
VeriSign, Inc. provides domain name registry services and Internet security worldwide. The company offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, .gov, .jobs, .edu, .name, and other domain names. Its registry services allow individuals and organizations to establish their online identities. The company also provides infrastructure assurance services, including distributed denial of service protection and managed domain name system services. It serves financial institutions, software-as-a-service providers, e-commerce providers, and media companies through direct sales and indirect channels. The company was founded in 1995 and is headquartered in Reston, Virginia.
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