Check Point Software Technologies (NASDAQ: CHKP) and SeaChange International (NASDAQ:SEAC) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Risk & Volatility
Check Point Software Technologies has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, SeaChange International has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.
Insider and Institutional Ownership
67.8% of Check Point Software Technologies shares are owned by institutional investors. Comparatively, 71.8% of SeaChange International shares are owned by institutional investors. 29.0% of Check Point Software Technologies shares are owned by insiders. Comparatively, 2.9% of SeaChange International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Check Point Software Technologies and SeaChange International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Check Point Software Technologies||42.17%||22.02%||14.91%|
Valuation and Earnings
This table compares Check Point Software Technologies and SeaChange International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Check Point Software Technologies||$1.81 billion||10.58||$893.47 million||$4.50||26.06|
|SeaChange International||$77.67 million||1.22||-$9.06 million||($1.21)||-2.20|
Check Point Software Technologies has higher revenue and earnings than SeaChange International. SeaChange International is trading at a lower price-to-earnings ratio than Check Point Software Technologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Check Point Software Technologies and SeaChange International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Check Point Software Technologies||0||15||15||0||2.50|
Check Point Software Technologies currently has a consensus target price of $111.73, suggesting a potential downside of 4.73%. Given Check Point Software Technologies’ higher possible upside, research analysts plainly believe Check Point Software Technologies is more favorable than SeaChange International.
Check Point Software Technologies beats SeaChange International on 10 of the 11 factors compared between the two stocks.
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.
SeaChange International Company Profile
SeaChange International, Inc. (SeaChange) is engaged in the delivery of multiscreen video. The Company’s products and services facilitate the aggregation, licensing, management and distribution of video and advertising content for cable television system operators, telecommunications companies, satellite operators and media companies. SeaChange sells its software products and services across the world, to television service providers, including cable television system operators, telecommunications companies, satellite operators and media companies. Its systems enable service providers to offer other interactive television services that allow subscribers to receive personalized services and interact with their video devices. Its business consists of three product areas: multiscreen video backoffice, advertising and video gateway software solutions. It also offers SeaChange Infusion Advanced Advertising Platform, Adrenalin, SeaChange Infusion Advanced Advertising Platform and Nucleus.
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