Comparing Versant (NASDAQ:VSNT) and TechTarget (NASDAQ:TTGT)

Versant (NASDAQ:VSNT) and TechTarget (NASDAQ:TTGT) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

93.5% of TechTarget shares are owned by institutional investors. 0.1% of Versant shares are owned by insiders. Comparatively, 0.9% of TechTarget shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Versant and TechTarget”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Versant	$6.60 billion	0.64	$930.00 million	$3.48	8.80
TechTarget	$485.16 million	0.55	-$1.01 billion	($2.45)	-1.50

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

Profitability

This table compares Versant and TechTarget’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Versant	N/A	N/A	N/A
TechTarget	-36.85%	-0.62%	-0.38%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Versant and TechTarget, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Versant	1	6	2	1	2.30
TechTarget	1	0	2	0	2.33

Versant currently has a consensus price target of $42.29, indicating a potential upside of 38.03%. TechTarget has a consensus price target of $8.00, indicating a potential upside of 117.10%. Given TechTarget’s stronger consensus rating and higher possible upside, analysts plainly believe TechTarget is more favorable than Versant.

Summary

Versant beats TechTarget on 9 of the 13 factors compared between the two stocks.

About Versant

Versant Corporation is a provider of data management software. The Company designs, develops, markets and supports database management system products that companies use to solve data management and data integration issues. It also provides related product support, training and consulting services to assist users of the Company’s products in developing and deploying software applications based on its products. The Company’s Versant Object Database product is used primarily by enterprises, which have data management requirements, such as technology providers, telecommunications carriers, Government defense agencies, defense contractors, healthcare companies and companies in the financial services and transportation industries. In addition to its product offerings, to assist users in their development and deployment of applications based on the Versant Object Database, FastObjects and db4o, it offers related professional services.

About TechTarget

TechTarget, Inc., together with its subsidiaries, provides marketing and sales services that deliver business impact for business-to-business technology companies in North America and internationally. The company's service enables technology vendors to identify, reach, and influence corporate information technology (IT) decision-makers actively researching specific IT purchases; and customized marketing programs that integrate demand generation, brand advertising techniques, and content curation and creation. It offers business to business services, such as IT Deal Alert, a suite of data, software, and services comprising Priority Engine and Qualified Sales Opportunities to identify and prioritize accounts and individuals actively researching new technology purchases or upgrades; demand solutions provides marketing programs, including white papers, webcasts, podcasts, videocasts, virtual trade shows, and content sponsorships; brand solutions which includes on-network banner advertising and digital sponsorships, off-network banner targeting, and microsites and related formats; custom content creation that delivers market insights and guidance to technology companies and off-the-shelf editorial sponsorship products on topics aligned to customer markets; and BrightTALK platform which allows customers to create, host and promote webinars, virtual events, and video content. In addition, the company operates websites, webinars, and virtual event channels that focus on a specific IT sector, such as storage, security, or networking; and enables registered members to conduct their pre-purchase research by accessing vendor supplied content through its virtual event and webinar channels, and website networks. TechTarget, Inc. was incorporated in 1999 and is headquartered in Newton, Massachusetts.