Contrasting CyberArk Software (CYBR) & Check Point Software Technologies (CHKP)

CyberArk Software (NASDAQ: CYBR) and Check Point Software Technologies (NASDAQ:CHKP) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Volatility and Risk

CyberArk Software has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Profitability

This table compares CyberArk Software and Check Point Software Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CyberArk Software 9.24% 7.19% 5.33%
Check Point Software Technologies 42.80% 22.46% 15.11%

Insider & Institutional Ownership

77.1% of CyberArk Software shares are owned by institutional investors. Comparatively, 73.9% of Check Point Software Technologies shares are owned by institutional investors. 29.0% of Check Point Software Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CyberArk Software and Check Point Software Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CyberArk Software $216.61 million 7.04 $28.12 million $0.63 69.68
Check Point Software Technologies $1.74 billion 9.94 $724.84 million $4.67 22.67

Check Point Software Technologies has higher revenue and earnings than CyberArk Software. Check Point Software Technologies is trading at a lower price-to-earnings ratio than CyberArk Software, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for CyberArk Software and Check Point Software Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CyberArk Software 0 8 8 0 2.50
Check Point Software Technologies 0 17 9 0 2.35

CyberArk Software presently has a consensus price target of $49.25, indicating a potential upside of 12.19%. Check Point Software Technologies has a consensus price target of $114.05, indicating a potential upside of 7.74%. Given CyberArk Software’s stronger consensus rating and higher possible upside, equities analysts clearly believe CyberArk Software is more favorable than Check Point Software Technologies.

Summary

Check Point Software Technologies beats CyberArk Software on 9 of the 14 factors compared between the two stocks.

About CyberArk Software

CyberArk Software Ltd is an Israel-based provider of information technology (IT) security solutions that protects organizations from cyber-attacks. The Company’s software solutions are focused on protecting privileged accounts, which have become a critical target in the lifecycle of cyber-attacks. The Company’s Privileged Account Security Solution consists of various products, such as Shares Technology Platform, Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, CyberArk-Conjur, Endpoint Privilege Manager and On-Demand Privileges Manager. The Company’s products provide protection against external and internal cyber threats and enables detection and neutralization of attacks. The Company’s Enterprise Password Vault provides customers with a tool to manage and protect all privileged accounts across an entire organization, including physical, virtual or cloud-based assets.

About Check Point Software Technologies

Check Point Software Technologies Ltd. (Check point) develops, markets and supports a range of products and services for information technology (IT) security. The Company’s products and services are sold to enterprises, service providers, small and medium sized businesses and consumers. It offers enterprises a platform to deploy independent, modular and interoperable security applications (Software Blades), such as firewall, virtual private network (VPN), intrusion prevention system (IPS), Application Control, Anti-Bot, antivirus, data loss prevention (DLP), policy management, event analysis or multi-domain management. The Company offers Software Blades grouped into functional packages to address specific security issues. It has product offerings under these packages, which include Next Generation Firewall, Next Generation Threat Prevention, Next Generation Secure Web Gateway and Next Generation Data Protection.

Receive News & Ratings for CyberArk Software Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CyberArk Software Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply