Financial Analysis: Onespan (OSPN) & Its Competitors

Onespan (NASDAQ:OSPN) is one of 953 public companies in the “Software” industry, but how does it contrast to its rivals? We will compare Onespan to related companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Volatility and Risk

Onespan has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Onespan’s rivals have a beta of 1.34, indicating that their average stock price is 34% more volatile than the S&P 500.

Insider & Institutional Ownership

95.5% of Onespan shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 2.0% of Onespan shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned 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.

Earnings and Valuation

This table compares Onespan and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Onespan	$243.18 million	$72.90 million	12.10
Onespan Competitors	$1.92 billion	$386.80 million	106.86

Onespan’s rivals have higher revenue and earnings than Onespan. Onespan is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Onespan pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Onespan pays out 28.7% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.9% and pay out 49.0% of their earnings in the form of a dividend. Onespan is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations for Onespan and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onespan	0	3	2	0	2.40
Onespan Competitors	5739	21500	44837	1493	2.57

Onespan currently has a consensus target price of $24.00, suggesting a potential upside of 9.59%. As a group, “Software” companies have a potential upside of 28.62%. Given Onespan’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Onespan has less favorable growth aspects than its rivals.

Profitability

This table compares Onespan and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onespan	27.52%	15.96%	11.19%
Onespan Competitors	-612.41%	21.13%	-8.86%

Summary

Onespan rivals beat Onespan on 9 of the 15 factors compared.

Onespan Company Profile

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, authentication, and secure digital agreements worldwide. The company offers OneSpan Sign, a range of e-signature requirements for occasional agreement to processing tens of thousands of transactions; OneSpan Cloud Authentication, a cloud-based multifactor authentication solution that supports a range of authentication options, including biometrics, push notification, and visual cryptograms for transaction data security, SMS, and hardware authenticators; and OneSpan Identity Verification, which enables banks and financial institutions identity verification services. It also provides Mobile Security Suite, a software development kit that protect mobile transactions; Digipass Authenticators, consisting of a wide variety of authentication devices; authentication servers that provides a range of strong authentication utilities and solutions designed to allow organizations to securely authenticate users and transactions; and Digipass FX1 BIO, a physical passkey with fingerprint scan built for the workforce authentication market. In addition, it offers Virtual Room, a purpose-built, high-assurance solution that blends the simplicity of a consumer video collaboration app with high-assurance identity and authentication security; OneSpan Notary, an online notary solution developed for organizations with in-house notaries; and OneSpan Trust Vault, a blockchain-based decentralized digital storage solution that helps organizations meet compliance, regulatory, and chain of custody requirements for critical documents. It sells its solutions through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in May 2018. OneSpan Inc. was founded in 1991 and is headquartered in Boston, Massachusetts.