Financial Survey: VerifyMe (NASDAQ:VRME) & Light & Wonder (NASDAQ:LNW)

VerifyMe (NASDAQ:VRME) and Light & Wonder (NASDAQ:LNW) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares VerifyMe and Light & Wonder’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VerifyMe	-9.30%	-16.79%	-10.89%
Light & Wonder	7.43%	32.27%	5.58%

Institutional & Insider Ownership

8.8% of VerifyMe shares are held by institutional investors. Comparatively, 88.1% of Light & Wonder shares are held by institutional investors. 18.1% of VerifyMe shares are held by company insiders. Comparatively, 2.1% of Light & Wonder shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares VerifyMe and Light & Wonder’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VerifyMe	$25.31 million	0.82	-$3.39 million	($0.23)	-8.87
Light & Wonder	$2.90 billion	2.95	$163.00 million	$2.41	39.46

Light & Wonder has higher revenue and earnings than VerifyMe. VerifyMe is trading at a lower price-to-earnings ratio than Light & Wonder, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for VerifyMe and Light & Wonder, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VerifyMe	0	0	2	0	3.00
Light & Wonder	1	4	6	0	2.45

VerifyMe currently has a consensus target price of $3.00, indicating a potential upside of 47.06%. Light & Wonder has a consensus target price of $95.08, indicating a potential downside of 0.03%. Given VerifyMe’s stronger consensus rating and higher possible upside, analysts plainly believe VerifyMe is more favorable than Light & Wonder.

Risk and Volatility

VerifyMe has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Light & Wonder has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500.

Summary

Light & Wonder beats VerifyMe on 11 of the 14 factors compared between the two stocks.

About VerifyMe

VerifyMe, Inc., together with its subsidiary, PeriShip Global, LLC, operates as a technology solutions provider that specializes in products to connect brands with consumers and providing brands with end-to-end logistics management for their products. The company operates through two segments, VerifyMe Solutions and PeriShip Global Solutions. The VerifyMe Solutions segment offers technology solutions to connect brands with consumers allowing brand owners to gather business intelligence while engaging directly with their consumers. Its solutions provide brand protection and supply chain functions, such as counterfeit prevention, traceability, consumer engagement solutions, and authentication for labels, packaging, and products, as well as tamper-proof labels. The PeriShip Global Solutions segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment's products include PeriTrack customer dashboard, an integrated web portal tool gives its customers an in-depth look at their shipping activities based on real-time data. It also provides call center, pre-transit, post-delivery, and weather/traffic services. The company has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.

About Light & Wonder

Light & Wonder, Inc. operates as a cross-platform games company in the United States and internationally. The company operates through three segments: Gaming, SciPlay, and iGaming segments. The Gaming segment sells game content and gaming machine; video gaming terminals; video lottery terminals, including conversion kits and spare parts; and table products, including automatic card shufflers, deck checkers, table roulette chip sorters and other land-based table gaming equipment. It also leases or provides gaming content, gaming machines, and server-based system; sells and supports casino-management system based software and hardware; and licenses proprietary table games content to commercial, tribal and governmental gaming operators. The SciPlay segment develops, markets, and operates social games on various mobile and web platforms, as well as other games in the hyper-casual space. It sells virtual coins, chips, or bingo cards, which players can use to play slot games, table games, or bingo games. The iGaming segment provides a suite of digital gaming content, distribution platforms, player account management systems, and other iGaming content and services. This segment also offers the Open Platform System, which offers a range of reporting and administrative functions and tools providing operators control over various areas of digital gaming operations. Light & Wonder, Inc. was incorporated in 1984 and is headquartered in Las Vegas, Nevada.