CyberArk Software (NASDAQ: CYBR) and Rosetta Stone (NYSE:RST) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

81.4% of CyberArk Software shares are owned by institutional investors. Comparatively, 73.4% of Rosetta Stone shares are owned by institutional investors. 13.0% of Rosetta Stone shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

CyberArk Software has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500. Comparatively, Rosetta Stone has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares CyberArk Software and Rosetta Stone’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CyberArk Software $235.84 million 5.31 $35.17 million $0.78 54.32
Rosetta Stone $193.97 million 1.17 $2.56 million ($0.53) -19.19

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

Profitability

This table compares CyberArk Software and Rosetta Stone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CyberArk Software 11.93% 9.13% 6.77%
Rosetta Stone -6.06% -926.26% -4.89%

Analyst Ratings

This is a summary of current ratings and target prices for CyberArk Software and Rosetta Stone, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CyberArk Software 1 8 8 0 2.41
Rosetta Stone 0 0 1 0 3.00

CyberArk Software presently has a consensus price target of $49.06, indicating a potential upside of 15.80%. Rosetta Stone has a consensus price target of $15.00, indicating a potential upside of 47.49%. Given Rosetta Stone’s stronger consensus rating and higher probable upside, analysts plainly believe Rosetta Stone is more favorable than CyberArk Software.

Summary

CyberArk Software beats Rosetta Stone on 10 of the 13 factors compared between the two stocks.

CyberArk Software Company Profile

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.

Rosetta Stone Company Profile

Rosetta Stone Inc. (Rosetta Stone) offers personalized language and reading programs. The Company’s solutions are used by schools, businesses, government organizations and individuals around the world. Its segments include Enterprise & Education, which derives revenues from sales to educational institutions, corporations and government agencies worldwide, and Consumer, which derives revenue from sales to individuals and retail partners. Its cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, corporate setting, or personal learning environment. Its Fit Brains business offers personalized brain training programs. The Company offers courses in over 30 languages across formats, including Web-based software subscriptions, digital downloads, mobile applications, and perpetual compact disc packages. It also offers a portfolio of technology-based learning products for personal use to the global consumer.

Receive News & Ratings for CyberArk Software Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CyberArk Software Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.