Konami (OTCMKTS:KNMCY) & Virnetx (NASDAQ:VHC) Critical Comparison

Konami (OTCMKTS:KNMCY) and Virnetx (NASDAQ:VHC) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Analyst Ratings

This is a summary of current ratings for Konami and Virnetx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Konami	0	0	0	0	0.00
Virnetx	1	0	0	0	1.00

Profitability

This table compares Konami and Virnetx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Konami	7.25%	6.91%	4.60%
Virnetx	N/A	-72.84%	-54.96%

Volatility and Risk

Konami has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Virnetx has a beta of 2.3, meaning that its share price is 130% more volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Konami shares are owned by institutional investors. Comparatively, 10.4% of Virnetx shares are owned by institutional investors. 15.7% of Virnetx shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Konami and Virnetx”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Konami	$2.42 billion	3.56	$183.01 million	$1.33	47.83
Virnetx	$160,000.00	394.91	-$18.23 million	($5.16)	-2.92

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

Summary

Konami beats Virnetx on 7 of the 12 factors compared between the two stocks.

About Konami

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

About Virnetx

VirnetX Holding Corporation, through its subsidiary VirnetX, Inc., operates as an Internet security software and technology company primarily in the United States. The company develops software and technology solutions, including secure domain name registry and GABRIEL Connection Technology that are designed to secure communications over the Internet using zero trust network access. It also offers a portfolio of licenses and services, such as VirnetX One, a security-as-a-service platform that protects enterprise applications, services, and infrastructure from cyber-attacks; GABRIEL Connection Technology software development kit to assist with rapid integration of its techniques into existing software implementations; and War Room software that offers safe and secure video conferencing meeting environment where sensitive communications and data is invisible to those not authorized to view it. In addition, the company provides GABRIEL Collaboration Suite that enables seamless and secure cross-platform communications between users’ devices. It serves domain infrastructure and communication service providers, and system integrators; and enterprise customers, developers, and original equipment manufacturers of chips, servers, desktops, smart phones, tablets, laptops, net books, and other devices in the IP-telephony, mobility, fixed-mobile convergence, and unified communications markets. The company was incorporated in 2005 and is headquartered in Zephyr Cove, Nevada.