SecureWorks Corp. (SCWX) vs. Its Competitors Critical Review
SecureWorks Corp. (NASDAQ: SCWX) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its competitors? We will compare SecureWorks Corp. to related companies based on the strength of its dividends, risk, analyst recommendations, institutional ownership, valuation, earnings and profitability.
This table compares SecureWorks Corp. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SecureWorks Corp. Competitors||-20.43%||-51.75%||-3.64%|
Insider & Institutional Ownership
7.7% of SecureWorks Corp. shares are owned by institutional investors. Comparatively, 60.9% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 88.0% of SecureWorks Corp. shares are owned by insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
SecureWorks Corp. has a beta of 3.04, meaning that its share price is 204% more volatile than the S&P 500. Comparatively, SecureWorks Corp.’s competitors have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for SecureWorks Corp. and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SecureWorks Corp. Competitors||683||4459||7466||169||2.56|
SecureWorks Corp. presently has a consensus price target of $14.00, suggesting a potential upside of 29.87%. As a group, “IT Services & Consulting” companies have a potential downside of 1.47%. Given SecureWorks Corp.’s higher probable upside, equities analysts clearly believe SecureWorks Corp. is more favorable than its competitors.
Valuation & Earnings
This table compares SecureWorks Corp. and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|SecureWorks Corp.||$455.77 million||-$25.29 million||-20.73|
|SecureWorks Corp. Competitors||$2.12 billion||$371.54 million||16.60|
SecureWorks Corp.’s competitors have higher revenue and earnings than SecureWorks Corp.. SecureWorks Corp. is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
About SecureWorks Corp.
Secureworks Corp. is a holding company. The Company provides intelligence-driven information security solutions. The Company is focused on protecting the Company’s clients from cyber-attacks. The Company’s solutions enable companies 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 offered managed security and threat intelligence on a subscription basis under contracts with initial terms that typically range from one to three years and, as of February 3, 2017. The Company’s integrated suite of solutions includes Managed security, Threat intelligence, Security and risk consulting and Incident response.
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