The KEYW Holding Corporation (NASDAQ: KEYW) and Mimecast Limited (NASDAQ:MIME) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitabiliy.

Valuation & Earnings

This table compares The KEYW Holding Corporation and Mimecast Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
The KEYW Holding Corporation $282.64 million 1.55 $18.86 million ($0.34) -26.29
Mimecast Limited $186.56 million 8.44 $2.15 million ($0.10) -279.27

The KEYW Holding Corporation has higher revenue and earnings than Mimecast Limited. Mimecast Limited is trading at a lower price-to-earnings ratio than The KEYW Holding Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for The KEYW Holding Corporation and Mimecast Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The KEYW Holding Corporation 0 2 3 0 2.60
Mimecast Limited 0 1 12 0 2.92

The KEYW Holding Corporation currently has a consensus price target of $12.33, indicating a potential upside of 37.96%. Mimecast Limited has a consensus price target of $28.91, indicating a potential upside of 3.51%. Given The KEYW Holding Corporation’s higher probable upside, analysts clearly believe The KEYW Holding Corporation is more favorable than Mimecast Limited.

Volatility and Risk

The KEYW Holding Corporation has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Mimecast Limited has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares The KEYW Holding Corporation and Mimecast Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The KEYW Holding Corporation -5.02% -1.55% -0.85%
Mimecast Limited -2.92% -6.82% -2.90%

Institutional and Insider Ownership

97.3% of The KEYW Holding Corporation shares are owned by institutional investors. Comparatively, 47.7% of Mimecast Limited shares are owned by institutional investors. 4.6% of The KEYW Holding Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

The KEYW Holding Corporation beats Mimecast Limited on 8 of the 13 factors compared between the two stocks.

The KEYW Holding Corporation Company Profile

The KeyW Holding Corporation is a holding company. The Company is a provider of engineering and technology solutions to support the collection, processing, analysis and dissemination of information across the full spectrum of the Intelligence, cyber and counterterrorism communities missions. It operates through Government Solutions segment. Its solutions are designed to meet the needs of agile intelligence and the United States government national security priorities through a range of cyber operations and training, geospatial intelligence, cloud and data analytics, engineering, and intelligence analysis and operations offerings. Its Intelligence Surveillance and Reconnaissance solution suite is deployed from a sensor delivery platform. It includes products, including electro-optical, hyperspectral and synthetic aperture radar sensors, and other products that it manufactures and integrates with hardware and software to meet evolving intelligence mission requirements.

Mimecast Limited Company Profile

Mimecast Limited is a provider of cloud security and risk management services for corporate information and e-mail. The Company’s suite of cloud services protects customers from the business and data security risks. It also mitigates the business disruption that e-mail failure or downtime causes. In addition, its archiving services secure, store and manage critical corporate communications and information to address the compliance and e-discovery requirements. It has developed its cloud architecture to offer customers e-mail security, continuity and archiving capabilities in a single service. It has developed an operating system (OS) called Mime OS for native cloud services. It protects inbound and outbound e-mail from malware, spam, threats, e-mail denial of service (DoS) and distributed denial of service (DDoS), data leaks and other security threats. It also offers service bundles, and Mimecast mobile and desktop applications.

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