Verra Mobility (NASDAQ:VRRM) and Alta Mesa Resources (NASDAQ:AMR) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Profitability

This table compares Verra Mobility and Alta Mesa Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verra Mobility N/A 11.77% 2.43%
Alta Mesa Resources N/A N/A N/A

Valuation & Earnings

This table compares Verra Mobility and Alta Mesa Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verra Mobility $370.15 million 5.90 -$58.40 million ($0.67) -20.57
Alta Mesa Resources N/A N/A $1.89 million N/A N/A

Alta Mesa Resources has lower revenue, but higher earnings than Verra Mobility.

Insider & Institutional Ownership

44.1% of Verra Mobility shares are owned by institutional investors. Comparatively, 48.9% of Alta Mesa Resources shares are owned by institutional investors. 0.7% of Verra Mobility shares are owned by insiders. Comparatively, 0.2% of Alta Mesa Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Verra Mobility and Alta Mesa Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verra Mobility 0 2 3 0 2.60
Alta Mesa Resources 1 2 1 0 2.00

Verra Mobility currently has a consensus target price of $14.92, suggesting a potential upside of 8.24%. Alta Mesa Resources has a consensus target price of $8.30, suggesting a potential upside of 6,816.67%. Given Alta Mesa Resources’ higher possible upside, analysts clearly believe Alta Mesa Resources is more favorable than Verra Mobility.

Risk & Volatility

Verra Mobility has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Alta Mesa Resources has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Summary

Verra Mobility beats Alta Mesa Resources on 6 of the 10 factors compared between the two stocks.

Verra Mobility Company Profile

Verra Mobility Corporation provides smart mobility technology solutions and services in the United States, Canada, and Europe. It operates through two segments, Government Solutions and Commercial Services. The Government Solutions segment offers automated safety solutions, including services and technologies that enable photo enforcement through road safety camera programs related to red light, speed, school bus, and city bus lanes. This segment serves municipalities, counties, school districts, and law enforcement agencies. The Commercial Services segment provides automated toll and violations management, and title and registration solutions to rental car companies, fleet management companies, and other large fleet owners. The company is headquartered in Mesa, Arizona.

Alta Mesa Resources Company Profile

Alta Mesa Resources, Inc. focuses on the acquisition and development of unconventional oil and natural gas reserves in the Anadarko Basin. It also offers midstream energy services, including crude oil and gas gathering, processing, and marketing to producers of natural gas, natural gas liquids, crude oil, and condensate in the STACK Play region of Oklahoma. The company was formerly known as Silver Run Acquisition Corporation II and changed its name to Alta Mesa Resources, Inc. in February 2018. Alta Mesa Resources, Inc. was founded in 1987 and is based in Houston, Texas.

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