Contrasting Yext (NYSE:YEXT) and Versus Systems (NASDAQ:VS)

Yext (NYSE:YEXT) and Versus Systems (NASDAQ:VS) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Yext and Versus Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	0	2	2	0	2.50
Versus Systems	0	1	0	0	2.00

Yext presently has a consensus price target of $7.31, suggesting a potential upside of 13.55%. Versus Systems has a consensus price target of $1.50, suggesting a potential upside of 25.00%. Given Versus Systems’ higher probable upside, analysts clearly believe Versus Systems is more favorable than Yext.

Institutional and Insider Ownership

71.0% of Yext shares are owned by institutional investors. Comparatively, 60.7% of Versus Systems shares are owned by institutional investors. 8.4% of Yext shares are owned by company insiders. Comparatively, 20.1% of Versus Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Yext and Versus Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$396.15 million	2.05	-$2.63 million	($0.05)	-128.80
Versus Systems	$270,000.00	11.33	-$10.51 million	N/A	N/A

Yext has higher revenue and earnings than Versus Systems.

Profitability

This table compares Yext and Versus Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yext	-1.68%	-3.35%	-1.07%
Versus Systems	-8,703.52%	-255.40%	-217.71%

Volatility and Risk

Yext has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Versus Systems has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.

Summary

Yext beats Versus Systems on 8 of the 12 factors compared between the two stocks.

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company's platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

About Versus Systems

Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company offers eXtreme Engagement Online platform that is designed primarily for in-venue main-board work in stadiums and arenas; Filter Fan Cam (FFC) platform, an augmented reality filtering tool that can be used for mobile and in-venue applications; and Winfinite, which allows brands, media companies, and advertising agencies to reach out to customers directly on their mobile devices. It also offers business-to-business software platform that allows video game publishers, developers, and other interactive media content creators in-game prizing and rewards based on the completion of in-content challenges. In addition, the company provides XEO technology platform that offers online audience engagement. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.