Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, security software specialist VASCO Data Security (NASDAQ:VDSI) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at VASCO's business, and see what CAPS investors are saying about the stock right now.

VASCO facts

Headquarters (founded)

Oakbrook Terrace, Ill. (1996)

Market Cap

$356.5 million


Security software and services

TTM Revenue

$135.2 million


CEO T. Kendall Hunt (since 2002)
COO Jan Valcke (since 2002)

Return on Equity (average last three years)



Aladdin Knowledge Systems (NASDAQ:ALDN)
ActivIdentity (NASDAQ:ACTI)

CAPS members bullish on VDSI also bullish on


CAPS members bearish on VDSI also bearish on

Wachovia (NYSE:WB)
Ford Motor (NYSE:F)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 2,149 of the 2,198 members who have rated VASCO -- some 98% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include All-Star rivasray and TheShadowFox.

Late last month, rivasray noted that all of the stock's signs pointed higher:

Valuation. Fundamentals. Solid earnings this stock must go up.

In an earlier pitch from October, TheShadowFox shares that bullishness, highlighting VASCO's secure position in security:

VASCO's management is fully invested in the company. Its DigiPass product is constantly being upgraded and new international locations are being opened. Since it is so highly correlated with the financial sector (most of its customers are banks) its stock has taken a beating. Look for VASCO to become a leading preferred provider of data security.

What do you think about VASCO, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.