Reviewing Autodesk (ADSK) and Secureworks (SCWX)

Autodesk (NASDAQ:ADSK) and Secureworks (NASDAQ:SCWX) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Valuation & Earnings

This table compares Autodesk and Secureworks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autodesk $2.06 billion 14.08 -$566.90 million ($1.60) -82.81
Secureworks $467.90 million 2.82 -$28.07 million ($0.45) -35.87

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

Volatility & Risk

Autodesk has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Secureworks has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

Insider & Institutional Ownership

95.6% of Autodesk shares are owned by institutional investors. Comparatively, 8.8% of Secureworks shares are owned by institutional investors. 0.1% of Autodesk shares are owned by insiders. Comparatively, 87.5% of Secureworks shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Autodesk and Secureworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autodesk -18.52% -3,087.49% -5.61%
Secureworks -5.13% -4.67% -3.24%

Analyst Ratings

This is a summary of recent ratings and target prices for Autodesk and Secureworks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autodesk 0 3 17 0 2.85
Secureworks 1 4 4 0 2.33

Autodesk currently has a consensus price target of $163.74, indicating a potential upside of 23.57%. Secureworks has a consensus price target of $12.36, indicating a potential downside of 23.44%. Given Autodesk’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Autodesk is more favorable than Secureworks.

Autodesk Company Profile

Autodesk, Inc. operates as a design software and services company worldwide. The company offers AutoCAD, a professional design, drafting, detailing, and visualization software; and AutoCAD LT, a professional drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; and AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects. It also provides Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; Revit software for building information modeling; and Inventor tool for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation. In addition, the company offers BIM 360, a construction management cloud-based software; Shotgun, a cloud-based software for review and production tracking in the media and entertainment industry; and Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool. It licenses or sells its products to customers in the architecture, engineering, and construction; manufacturing; and digital media, consumer, and entertainment industries directly, as well as through distributors and resellers. The company was founded in 1982 and is headquartered in San Rafael, California.

Secureworks Company Profile

SecureWorks Corp., through its subsidiaries, provides intelligence-driven information security solutions focused on protecting organizations from cyber-attacks. The company's solutions include managed security, threat intelligence, security and risk consulting, and incident response. Its solutions enable organizations to fortify their cyber defenses to prevent security breaches, detect malicious activity in real time, prioritize and respond to security incidents, and predict emerging threats. The company serves clients in a range of industries, including the financial, manufacturing, technology, retail, insurance, utility, and healthcare sectors. As of February 2, 2018, it served approximately 4,400 clients across 59 countries. The company was formerly known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. The company was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Inc.

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