Kingdee International Software Group (OTCMKTS:KGDEY) versus Vertex (NASDAQ:VERX) Financial Analysis

Kingdee International Software Group (OTCMKTS:KGDEY) and Vertex (NASDAQ:VERX) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for Kingdee International Software Group and Vertex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingdee International Software Group	0	0	0	1	4.00
Vertex	1	7	7	0	2.40

Vertex has a consensus target price of $23.07, suggesting a potential upside of 113.68%. Given Vertex’s higher probable upside, analysts plainly believe Vertex is more favorable than Kingdee International Software Group.

Profitability

This table compares Kingdee International Software Group and Vertex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingdee International Software Group	N/A	N/A	N/A
Vertex	0.96%	24.70%	4.95%

Earnings and Valuation

This table compares Kingdee International Software Group and Vertex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingdee International Software Group	$974.65 million	3.85	$12.93 million	N/A	N/A
Vertex	$748.44 million	2.31	$7.21 million	$0.04	269.88

Kingdee International Software Group has higher revenue and earnings than Vertex.

Institutional and Insider Ownership

70.3% of Vertex shares are held by institutional investors. 43.3% of Vertex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Kingdee International Software Group has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Vertex has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Summary

Vertex beats Kingdee International Software Group on 8 of the 13 factors compared between the two stocks.

About Kingdee International Software Group

Kingdee International Software Group Company Limited, an investment holding company, engages in the enterprise resource planning business. The company operates through ERP Business and Others, Cloud Services Business, and Investment Properties Operating Business segments. The ERP Business and Others segment sells software and hardware products; and provides software solution consulting, maintenance, upgrade, and other supporting services, as well as software implementation services. The Cloud Services Business segment provides enterprise, finance, industry, and other cloud services. The Investment Properties Operating Business segment invests in properties and office buildings. The company also designs, develops, manufactures, and sells software and hardware products; provides software-related and online financial services; and develops Internet and online pay technologies. It serves enterprises, government agencies, and other organizations worldwide. Kingdee International Software Group Company Limited was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

About Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.