Analyzing Logitech (LOGI) & FireEye (FEYE)

Logitech (NASDAQ: LOGI) and FireEye (NASDAQ:FEYE) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Dividends

Logitech pays an annual dividend of $0.41 per share and has a dividend yield of 1.0%. FireEye does not pay a dividend. Logitech pays out 30.6% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Logitech and FireEye’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Logitech $2.57 billion 2.60 $208.54 million $1.34 30.29
FireEye $751.09 million 4.55 -$303.69 million ($1.09) -16.33

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

Volatility & Risk

Logitech has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, FireEye has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Logitech and FireEye, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Logitech 1 0 4 0 2.60
FireEye 0 10 13 0 2.57

Logitech currently has a consensus price target of $45.80, indicating a potential upside of 12.84%. FireEye has a consensus price target of $19.02, indicating a potential upside of 6.87%. Given Logitech’s stronger consensus rating and higher possible upside, equities analysts clearly believe Logitech is more favorable than FireEye.

Profitability

This table compares Logitech and FireEye’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Logitech 8.16% 24.69% 14.02%
FireEye -37.68% -25.25% -7.90%

Institutional and Insider Ownership

33.5% of Logitech shares are owned by institutional investors. Comparatively, 65.3% of FireEye shares are owned by institutional investors. 2.2% of Logitech shares are owned by insiders. Comparatively, 2.4% of FireEye shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Logitech beats FireEye on 10 of the 15 factors compared between the two stocks.

Logitech Company Profile

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms worldwide. The company offers portable wireless Bluetooth speakers, PC speakers, PC headsets, in-ear headphones, and wireless audio wearables; gaming mice, keyboards, headsets, mousepads, and steering wheels and flight sticks; and audio and video, and other products that connect small and medium sized user groups. It also provides keyboards and covers for tablets and smartphones, as well as other accessories for mobile devices; pointing devices, such as PC and Mac-related mice, touchpads, and presenters; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combos; PC-based Webcams; and remote control and home automation products. The company sells its products through direct sales to retailers and e-tailers, as well as indirect sales through distributors. Its channel network includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers, and online merchants. The company was founded in 1981 and is headquartered in Lausanne, Switzerland.

FireEye Company Profile

FireEye, Inc. provides cybersecurity solutions that allow organizations to prepare for, prevent, respond to, and remediate cyber-attacks. It offers vector-specific appliance, virtual appliance, and cloud-based solutions to detect and block known and unknown cyber-attacks. The company provides threat detection and prevention solutions, including network security products, email security solutions, and endpoint security solutions. It also offers security management and orchestration products, such as Central Management System, FireEye Security Orchestrator, and FireEye Helix platform; and forensics and investigation products, such as Threat Analytics Platform and Enterprise Forensics series of appliances. In addition, the company provides Security-as-a-Service solutions comprising cloud-based Email Threat Prevention solution and managed Defense/FireEye-as-a-Service offering; threat intelligence subscriptions, such as Dynamic Threat Intelligence cloud and FireEye iSIGHT Intelligence; and customer support and maintenance services. Further, it offers professional services, including incident response, compromise assessments, and related security consulting services; cyber threat intelligence services; and training services. The company serves telecommunications providers, financial services entities, Internet search engines, social networking sites, stock exchanges, electrical grid operators, networking vendors, oil and gas companies, healthcare and pharmaceutical companies, and local and international governmental agencies. FireEye, Inc. provides its products and services through distributors, resellers, and strategic partners in the United States, the Asia Pacific, Japan, Europe, the Middle East, Africa, and other regions. The company was formerly known as NetForts, Inc. and changed its name to FireEye, Inc. in September 2005. FireEye, Inc. was founded in 2004 and is headquartered in Milpitas, California.

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