Comparing VASCO Data Security International (VDSI) & Quality Systems (QSII)

VASCO Data Security International (NASDAQ: VDSI) and Quality Systems (NASDAQ:QSII) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Institutional & Insider Ownership

56.9% of VASCO Data Security International shares are held by institutional investors. Comparatively, 70.2% of Quality Systems shares are held by institutional investors. 22.5% of VASCO Data Security International shares are held by company insiders. Comparatively, 17.9% of Quality Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for VASCO Data Security International and Quality Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VASCO Data Security International 0 1 3 0 2.75
Quality Systems 4 4 2 0 1.80

VASCO Data Security International presently has a consensus target price of $20.67, suggesting a potential downside of 5.20%. Quality Systems has a consensus target price of $16.19, suggesting a potential downside of 17.66%. Given VASCO Data Security International’s stronger consensus rating and higher probable upside, analysts clearly believe VASCO Data Security International is more favorable than Quality Systems.

Profitability

This table compares VASCO Data Security International and Quality Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VASCO Data Security International -10.76% 6.71% 5.06%
Quality Systems 0.46% 10.88% 6.97%

Earnings & Valuation

This table compares VASCO Data Security International and Quality Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VASCO Data Security International $193.29 million 4.55 -$22.39 million $0.43 50.70
Quality Systems $531.02 million 2.36 $2.42 million $0.57 34.49

Quality Systems has higher revenue and earnings than VASCO Data Security International. Quality Systems is trading at a lower price-to-earnings ratio than VASCO Data Security International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

VASCO Data Security International has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Quality Systems has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

VASCO Data Security International Company Profile

VASCO Data Security International, Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide. The company offers DIGIPASS software authenticators; DIGIPASS for Apps, a software development kit; DIGIPASS for Mobile, a mobile authenticator that operates as a discrete mobile application; IDENTIKEY Risk Manager, an anti-fraud solution; and application shielding with runtime application self-protection that neutralizes the threat of attacks on mobile apps. It also provides eSignLive eSignature solution; and eSignLive eVault Manager, a Web-based platform that provides mortgage lenders, auto financers, equipment lessors, and other financial services organizations the means to store, assign, and service electronic mortgage notes, and secured loans and leases. In addition, the company offers VACMAN solutions; DIGIPASS hardware authenticators to support authentication and digital signatures for applications running on desktop PCs, laptops, tablets, and smart phones; and IDENTIKEY Authentication Server, an authentication server that supports the deployment, use, and administration of DIGIPASS strong user authentication. It sells its products to financial institutions, businesses, and government organizations through direct sales force, distributors, resellers, systems integrators, and original equipment manufacturers. VASCO Data Security International, Inc. was founded in 1991 and is headquartered in Chicago, Illinois.

Quality Systems Company Profile

Quality Systems, Inc., together with its subsidiaries, develops and markets software and services that automate various aspects of practice management (PM) and electronic health records for medical and dental practices in the United States. The company's NextGen division provides integrated clinical, financial, and connectivity solutions for ambulatory and dental provider organizations. Its principal products include the NextGen Ambulatory product suite; interoperability solutions; and MediTouch, a cloud-based software suite comprising clearinghouse, PM, electronic health records, and patient portals, which enable mobility, workflow automation, and reporting and analytics. Its RCM Services Division offers technology-based solutions that are designed to optimize clients' revenue cycle costs and process efficiency, as well as to enhance clients' cash flow. This division provides revenue cycle management optimization services; and billing and collections, claims submissions and reconciliation, electronic remittance and payment posting, accounts receivable management, patient client service, advance analytics, charge entry and capture, enrollment credentialing, and software setup, hosting, and support services. The company's QSI Dental division focuses on developing, marketing, and supporting software suites for dental group organizations. This division also offers QSIDental Web, a cloud-based and software as a service and PM clinical software solution; and sells licenses to its products. The company also provides software implementation, training, support, and maintenance services; and electronic data interchange services. It serves single and small practice physicians, physician hospital organizations, management service organizations, accountable care organizations, ambulatory care centers, community health centers, and medical and dental schools through a sales force and a reseller channel. The company was founded in 1974 and is headquartered in Irvine, California.

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