Head-To-Head Analysis: Callidus Software (CALD) & Verisign (VRSN)

Callidus Software (NASDAQ: CALD) and Verisign (NASDAQ:VRSN) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Risk and Volatility

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Callidus Software has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Verisign has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Institutional and Insider Ownership

94.5% of Callidus Software shares are owned by institutional investors. 1.6% of Callidus Software shares are owned by company insiders. Comparatively, 0.9% of Verisign shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Callidus Software and Verisign’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Callidus Software $253.09 million 9.45 -$20.27 million ($0.19) -189.47
Verisign $1.17 billion 9.81 $457.24 million $3.68 31.98

Verisign has higher revenue and earnings than Callidus Software. Callidus Software is trading at a lower price-to-earnings ratio than Verisign, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Callidus Software and Verisign, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callidus Software 0 9 3 0 2.25
Verisign 1 3 0 0 1.75

Callidus Software presently has a consensus target price of $33.10, indicating a potential downside of 8.06%. Verisign has a consensus target price of $106.25, indicating a potential downside of 9.72%. Given Callidus Software’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Callidus Software is more favorable than Verisign.

Profitability

This table compares Callidus Software and Verisign’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Callidus Software -8.01% -4.16% -2.42%
Verisign 39.25% -36.88% 17.13%

About Callidus Software

Callidus Software Inc. provides cloud-based sales, marketing, learning, and customer experience solutions worldwide. The company enables its customers to sell Lead to Money suite of solutions that identify leads, train personnel, implement territory and quota plans, enable sales forces, automate configuration pricing and quoting, manage contracts, streamline sales compensation, capture customer feedback, and provide predictive analytics for competitive advantage. It offers Lead to Money suite and technology solutions, which include sales performance management solutions, such as Commissions, Territory and Quota, and SalesMotivate; Sales Execution solutions, including Configure Price Quote, Contract Lifecycle Management, Datahug, and Revsym; and Customer Engagement solutions comprising Marketing Automation, Voice of the Customer, and ServiceMotivate. The company also provides Sales Enablement and Learning solutions consisting of Enablement, Litmos Learning Management System, Litmos Heroes, and Coaching; Technology solutions, including Database Management System, Thunderbridge Advanced Analytics, Thunderbridge Augmented Intelligence, Workflow, and Connect Enterprise; and Vertical Solutions, such as Producer Pro, Telco Dealer Pro, Incentive Compensation Management, and DS Pro. In addition, it offers a range of services comprising professional, business process outsourcing, maintenance and technical support, and education services Callidus Software Inc. was founded in 1996 and is headquartered in Dublin, California.

About Verisign

VeriSign, Inc. is a provider of domain name registry services and Internet security. The Company operates through Registry Services and Security Services segment. Registry Services ensure the security, stability and resiliency of Internet infrastructure and services, including the .com and .net domains, and operation of the root-zone maintainer functions for the core of the Internet’s Domain Name System (DNS). Security Services provides infrastructure assurance services consisting of Distributed Denial of Services (DDoS) Protection Services and Managed DNS Services. DDoS Protection Services supports online business continuity by providing monitoring and mitigation services against DDoS attacks. Managed DNS Services is a hosting service that delivers DNS resolution for the availability of Web-based systems.

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