SecureWorks (NASDAQ:SCWX) vs. Innovid (NYSE:CTV) Head to Head Review

Innovid (NYSE:CTV) and SecureWorks (NASDAQ:SCWX) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Innovid and SecureWorks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovid	-20.24%	-7.81%	-6.18%
SecureWorks	-23.52%	-9.56%	-6.58%

Institutional and Insider Ownership

25.5% of Innovid shares are held by institutional investors. Comparatively, 14.4% of SecureWorks shares are held by institutional investors. 9.9% of Innovid shares are held by insiders. Comparatively, 81.5% of SecureWorks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Innovid has a beta of 3.28, meaning that its stock price is 228% more volatile than the S&P 500. Comparatively, SecureWorks has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Innovid and SecureWorks’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovid	$146.14 million	2.05	-$31.91 million	($0.21)	-9.86
SecureWorks	$365.88 million	1.48	-$86.04 million	($1.01)	-6.09

Innovid has higher earnings, but lower revenue than SecureWorks. Innovid is trading at a lower price-to-earnings ratio than SecureWorks, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Innovid and SecureWorks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovid	0	1	2	0	2.67
SecureWorks	1	1	0	0	1.50

Innovid presently has a consensus target price of $2.70, suggesting a potential upside of 30.43%. SecureWorks has a consensus target price of $7.08, suggesting a potential upside of 15.18%. Given Innovid’s stronger consensus rating and higher possible upside, equities analysts clearly believe Innovid is more favorable than SecureWorks.

Summary

Innovid beats SecureWorks on 11 of the 14 factors compared between the two stocks.

About Innovid

Innovid Corp. operates an independent software platform that provides ad serving, measurement, and creative services. It offers advertising services for the creation, delivery, and measurement of TV ads across connected TV, mobile TV, and desktop TV environments to advertisers, publishers, and media agencies. The company serves consumer packaged goods, pharmaceutical and healthcare, retail, financial services, and automotive and technology industries; third party agencies; and publishers in the United States, Canada, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Innovid Corp. was incorporated in 2007 and is headquartered in New York, New York.

About SecureWorks

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. The company's solutions include software-as-a-service solutions; managed security services; and professional services, including incident response and penetration testing services. Its solutions enable organizations to prevent security breaches, detect malicious activity, respond rapidly to security breaches, and identify emerging threats. The company sells its solutions primarily through its referral agents, regional value-added resellers, trade associations, and managed security service providers. It serves customers in a range of industries, including financial services, manufacturing, technology, retail, insurance, utility, and healthcare sectors. The company was formerly known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. SecureWorks Corp. was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Marketing L.P.