Xerox (NYSE: XRX) and Mitek Systems (NASDAQ:MITK) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Volatility & Risk
Xerox has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Mitek Systems has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.
Xerox pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Mitek Systems does not pay a dividend. Xerox pays out 28.7% of its earnings in the form of a dividend. Xerox has raised its dividend for 5 consecutive years.
Earnings & Valuation
This table compares Xerox and Mitek Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Xerox||$10.27 billion||0.70||$195.00 million||$3.48||8.09|
|Mitek Systems||$45.39 million||5.81||$14.09 million||$0.21||35.95|
Xerox has higher revenue and earnings than Mitek Systems. Xerox is trading at a lower price-to-earnings ratio than Mitek Systems, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Xerox and Mitek Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Xerox presently has a consensus target price of $35.81, suggesting a potential upside of 27.13%. Mitek Systems has a consensus target price of $12.25, suggesting a potential upside of 62.25%. Given Mitek Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Mitek Systems is more favorable than Xerox.
Institutional & Insider Ownership
85.7% of Xerox shares are held by institutional investors. Comparatively, 46.6% of Mitek Systems shares are held by institutional investors. 0.3% of Xerox shares are held by insiders. Comparatively, 8.5% of Mitek Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Xerox and Mitek Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Xerox beats Mitek Systems on 9 of the 17 factors compared between the two stocks.
Xerox Corporation designs, develops, and sells document management systems and solutions worldwide. It offers managed document services, including managed print services and multi-channel communication services, as well as a range of digital solutions, such as workflow automation services, content management, and digitization services. The company also provides desktop monochrome and color printers, and multifunction printers; copiers, digital printing presses and light production devices, and solutions; graphic communications and commercial printers; inkjet presses; and FreeFlow portfolio of software solutions for the automation and integration of print jobs processing. In addition, it sells paper products, wide-format systems, and global imaging systems network integration solutions. The company sells its products and services directly to its customers through sales force, as well as through independent agents, dealers, value-added resellers, systems integrators, and the Web. Xerox Corporation was founded in 1906 and is headquartered in Norwalk, Connecticut.
About Mitek Systems
Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers. The Company’s technology allows users to remotely deposit checks, open accounts, get insurance quotes, pay bills, as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. Its technology uses algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions. Its technology processes images of documents in various ways. The Company’s products include Mobile Verify, Mobile Fill, Mobile Docs, Mobile Deposit and Commercial Mobile Deposit Capture. Its mobile technology solutions are provided in two parts: a software development kit (SDK) for mobile capture, and a software platform for image correction, detection, extraction and authentication.
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