CyberArk Software (NASDAQ: CYBR) and Check Point Software Technologies (NASDAQ:CHKP) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CyberArk Software and Check Point Software Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CyberArk Software 0 8 8 0 2.50
Check Point Software Technologies 0 17 9 0 2.35

CyberArk Software currently has a consensus target price of $49.25, indicating a potential upside of 11.60%. Check Point Software Technologies has a consensus target price of $114.05, indicating a potential upside of 10.16%. Given CyberArk Software’s stronger consensus rating and higher probable upside, analysts clearly believe CyberArk Software is more favorable than Check Point Software Technologies.

Earnings & Valuation

This table compares CyberArk Software and Check Point Software Technologies’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CyberArk Software $216.61 million 7.08 $28.12 million $0.63 70.05
Check Point Software Technologies $1.74 billion 9.72 $724.84 million $4.68 22.12

Check Point Software Technologies has higher revenue and earnings than CyberArk Software. Check Point Software Technologies 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 Check Point Software Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CyberArk Software 9.24% 7.19% 5.33%
Check Point Software Technologies 42.80% 22.46% 15.11%

Institutional & Insider Ownership

77.1% of CyberArk Software shares are held by institutional investors. Comparatively, 73.9% of Check Point Software Technologies shares are held by institutional investors. 29.0% of Check Point Software Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

CyberArk Software has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Summary

Check Point Software Technologies beats CyberArk Software on 9 of the 14 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.

Check Point Software Technologies Company Profile

Check Point Software Technologies Ltd. (Check point) develops, markets and supports a range of products and services for information technology (IT) security. The Company’s products and services are sold to enterprises, service providers, small and medium sized businesses and consumers. It offers enterprises a platform to deploy independent, modular and interoperable security applications (Software Blades), such as firewall, virtual private network (VPN), intrusion prevention system (IPS), Application Control, Anti-Bot, antivirus, data loss prevention (DLP), policy management, event analysis or multi-domain management. The Company offers Software Blades grouped into functional packages to address specific security issues. It has product offerings under these packages, which include Next Generation Firewall, Next Generation Threat Prevention, Next Generation Secure Web Gateway and Next Generation Data Protection.

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