Ebix (NASDAQ:EBIX) and Onespan (OSPN) Head to Head Analysis

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Ebix (NASDAQ:EBIX) and Onespan (NASDAQ:OSPN) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Analyst Ratings

This is a summary of recent recommendations for Ebix and Onespan, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ebix 0 1 2 0 2.67
Onespan 0 0 3 0 3.00

Ebix presently has a consensus price target of $20.53, indicating a potential downside of 57.65%. Onespan has a consensus price target of $19.00, indicating a potential upside of 37.88%. Given Onespan’s stronger consensus rating and higher probable upside, analysts clearly believe Onespan is more favorable than Ebix.

Dividends

Ebix pays an annual dividend of $0.30 per share and has a dividend yield of 0.6%. Onespan does not pay a dividend. Ebix pays out 9.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

74.2% of Ebix shares are owned by institutional investors. Comparatively, 64.4% of Onespan shares are owned by institutional investors. 13.5% of Ebix shares are owned by insiders. Comparatively, 22.5% of Onespan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Ebix and Onespan’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ebix 23.85% 20.55% 8.79%
Onespan -12.85% 6.38% 4.64%

Risk and Volatility

Ebix has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Onespan has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ebix and Onespan’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ebix $363.97 million 4.17 $100.61 million $3.17 15.29
Onespan $193.29 million 2.87 -$22.39 million $0.43 32.05

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

Summary

Ebix beats Onespan on 9 of the 16 factors compared between the two stocks.

About Ebix

Ebix, Inc. provides software and e-commerce solutions to insurance, finance, and healthcare industries. It offers software development, customization, and consulting services to various entities in the insurance industry, including carriers, brokers, exchanges, and standard making bodies. The company operates data exchanges in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, insurance underwriting, and property and casualty (P&C) insurance. It also focuses on designing and deploying back-end systems, such as eGlobal, which targets multinational P&C insurance brokers; WinBeat that targets P&C brokers in the Australian and New Zealand markets; and EbixASP, a system for the P&C insurance brokers in the United States. In addition, the company offers business process outsourcing services that include providing domain intensive project management, time, and material based consulting engagements to clients; the creation and tracking of certificates of insurance issued in the United States and Australian markets; and the provision of claims adjudication and settlement, call center, and back office support, as well as a software-based service for the issuance of certificates of insurance and a service to track certificates of insurance for corporate clients in the United States and Australia. Further, the company offers carrier systems, which pertains to the designing and deploying on-demand back-end systems for P&C insurance companies. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Johns Creek, Georgia.

About Onespan

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, security, and business productivity worldwide. It enables financial institutions and other organizations to succeed by making bold advances in their digital transformation. The company offers DIGIPASS software authenticators that balance the need for stronger mobile application security; DIGIPASS for Apps, a software development kit, which allows application developers to natively integrate security features; DIGIPASS for Mobile, a mobile authenticator that operates as a discrete mobile application; IDENTIKEY Risk Manager, an anti-fraud solution; and application shielding with runtime application self-protection that neutralizes the threat of attacks on mobile apps. It also provides eSignLive eSignature solutions; and eSignLive eVault Manager, a Web-based platform that provides mortgage lenders, auto financers, equipment lessors, and other financial services organizations the means to store, assign, and service electronic mortgage notes, and secured loans and leases. In addition, the company offers VACMAN solutions; DIGIPASS hardware authenticators to support authentication and digital signatures for applications running on desktop PCs, laptops, tablets, and smart phones; and IDENTIKEY Authentication Server, an authentication server that supports the deployment, use, and administration of DIGIPASS strong user authentication. 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 Chicago, Illinois.

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