Comparing ECARX (NASDAQ:ECX) and VerifyMe (NASDAQ:VRME)

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

Profitability

This table compares VerifyMe and ECARX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VerifyMe	-13.39%	-20.35%	-13.09%
ECARX	-20.03%	N/A	-23.13%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for VerifyMe and ECARX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VerifyMe	0	0	2	0	3.00
ECARX	0	0	1	0	3.00

VerifyMe currently has a consensus price target of $2.85, suggesting a potential upside of 74.85%. ECARX has a consensus price target of $10.00, suggesting a potential upside of 513.50%. Given ECARX’s higher possible upside, analysts plainly believe ECARX is more favorable than VerifyMe.

Volatility & Risk

VerifyMe has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, ECARX has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Earnings and Valuation

This table compares VerifyMe and ECARX’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VerifyMe	$25.31 million	0.65	-$3.39 million	($0.35)	-4.66
ECARX	$4.67 billion	0.12	-$132.42 million	($0.38)	-4.29

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

Insider & Institutional Ownership

8.8% of VerifyMe shares are owned by institutional investors. 18.1% of VerifyMe shares are owned by company insiders. Comparatively, 20.0% of ECARX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

VerifyMe beats ECARX on 8 of the 13 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 ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.