Symantec (NASDAQ: SYMC) and China Information Technology (NASDAQ:CNIT) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Symantec and China Information Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Symantec 1 13 9 0 2.35
China Information Technology 0 0 0 0 N/A

Symantec currently has a consensus target price of $32.38, indicating a potential upside of 11.74%. Given Symantec’s higher probable upside, equities research analysts clearly believe Symantec is more favorable than China Information Technology.

Profitability

This table compares Symantec and China Information Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Symantec -5.29% 12.33% 2.65%
China Information Technology N/A N/A N/A

Insider and Institutional Ownership

95.0% of Symantec shares are owned by institutional investors. Comparatively, 1.2% of China Information Technology shares are owned by institutional investors. 1.3% of Symantec shares are owned by insiders. Comparatively, 45.4% of China Information Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Symantec pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. China Information Technology does not pay a dividend. Symantec pays out -51.7% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Symantec and China Information Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Symantec $4.02 billion 4.47 -$106.00 million ($0.58) -49.97
China Information Technology $10.19 million 5.88 -$18.17 million N/A N/A

China Information Technology has lower revenue, but higher earnings than Symantec.

Risk & Volatility

Symantec has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, China Information Technology has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.

Summary

Symantec beats China Information Technology on 8 of the 13 factors compared between the two stocks.

About Symantec

Symantec Corporation is a United States-based cyber security company. The Company offers products under categories, such as threat protection, information protection and cyber security services. Under threat protection, it offers Advanced Threat Protection, Endpoint Protection, Endpoint Protection Cloud, IT Management Suite, Email Security, Cloud, Data Center Security and Cloud Workload Protection products. Under the information protection category, it offers Data Loss Prevention, Encryption, Service, VIP Access Manager, and Data Loss Prevention and CloudSOC products. The Company also offers consulting services, customer success services, cyber security services and education services. Its cyber security services include DeepSight Intelligence software, which provides an analysis of attacks.

About China Information Technology

China Information Technology, Inc (CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, elevator safety management, education, etc. Through continuous innovation, CNIT is aiming to leverage its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community.

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