Analyzing Virtusa (VRTU) and Gemalto (GTOMY)

Virtusa (NASDAQ: VRTU) and Gemalto (OTCMKTS:GTOMY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.


Gemalto pays an annual dividend of $0.22 per share and has a dividend yield of 0.7%. Virtusa does not pay a dividend.

Earnings & Valuation

This table compares Virtusa and Gemalto’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Virtusa $858.73 million 1.61 $11.85 million $0.67 70.06
Gemalto $3.36 billion 1.64 -$479.14 million N/A N/A

Virtusa has higher earnings, but lower revenue than Gemalto.

Analyst Ratings

This is a summary of recent recommendations for Virtusa and Gemalto, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Virtusa 0 1 5 1 3.00
Gemalto 0 0 0 0 N/A

Virtusa presently has a consensus target price of $58.71, suggesting a potential upside of 25.08%. Given Virtusa’s higher probable upside, equities analysts plainly believe Virtusa is more favorable than Gemalto.

Institutional & Insider Ownership

86.7% of Virtusa shares are owned by institutional investors. Comparatively, 0.0% of Gemalto shares are owned by institutional investors. 6.0% of Virtusa shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.


This table compares Virtusa and Gemalto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Virtusa 0.92% 4.93% 3.00%
Gemalto N/A N/A N/A

Volatility & Risk

Virtusa has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Gemalto has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.


Virtusa beats Gemalto on 10 of the 13 factors compared between the two stocks.

About Virtusa

Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients’ core customer-facing processes into one or more core systems. It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development. The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.

About Gemalto

Gemalto N.V. provides digital security products and services worldwide. The company operates through two segments: Identity, IoT & Cybersecurity; and Smartcards & Issuance. It offers chip cards, mobile financial services, and contactless payment solutions; secure electronic identity documents, such as ePassports and badges; multi-factor online authentication and transaction solutions, as well as a range of support services; and data encryption systems and software monetization solutions to financial institutions, retailers, mass transit authorities, and government agencies and service providers, as well as enterprises of various sizes. The company also sells subscriber authentication and rights management solutions to Pay TV service providers. In addition, it offers various solutions for mobile network operators, including subscriber identification modules and universal integrated circuit cards, and back-office platforms; and services comprising roaming optimization, mobile payment and marketing, personal data management, and trusted services management. Further, the company provides industrial solutions that enable machine-to-machine (M2M) data exchange through hardware modules and operating software, which connect machines to digital networks, as well as cloud-based M2M application enablement and late-stage personalization platforms to enhance operations, productivity, and efficiency in the Internet of things for the utilities, health, and automotive markets. Additionally, it licenses its intellectual property and provides security and other technology advisory services. The company was formerly known as Axalto Holding N.V. and changed its name to Gemalto N.V. in June 2006. Gemalto N.V. was incorporated in 2002 and is headquartered in Amsterdam, the Netherlands.

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