Analyzing New Relic (NEWR) and CyberArk Software (CYBR)
New Relic (NYSE: NEWR) and CyberArk Software (NASDAQ:CYBR) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Earnings and Valuation
This table compares New Relic and CyberArk Software’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|New Relic||$284.97 million||9.78||-$46.54 million||($1.13)||-45.23|
|CyberArk Software||$235.84 million||5.46||$35.17 million||$0.78||55.78|
CyberArk Software has higher revenue, but lower earnings than New Relic. New Relic is trading at a lower price-to-earnings ratio than CyberArk Software, indicating that it is currently the more affordable of the two stocks.
This table compares New Relic and CyberArk Software’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
74.0% of New Relic shares are held by institutional investors. Comparatively, 79.3% of CyberArk Software shares are held by institutional investors. 23.1% of New Relic shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
New Relic has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, CyberArk Software has a beta of 2.57, meaning that its share price is 157% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for New Relic and CyberArk Software, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
New Relic presently has a consensus target price of $51.64, suggesting a potential upside of 1.03%. CyberArk Software has a consensus target price of $49.06, suggesting a potential upside of 12.76%. Given CyberArk Software’s higher possible upside, analysts clearly believe CyberArk Software is more favorable than New Relic.
CyberArk Software beats New Relic on 8 of the 13 factors compared between the two stocks.
About New Relic
New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.
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.
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