Head-To-Head Review: Fatpipe Inc/UT (NASDAQ:FATN) vs. Radware (NASDAQ:RDWR)

Fatpipe Inc/UT (NASDAQ:FATN) and Radware (NASDAQ:RDWR) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for Fatpipe Inc/UT and Radware, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fatpipe Inc/UT	1	0	3	0	2.50
Radware	0	2	0	0	2.00

Fatpipe Inc/UT currently has a consensus price target of $9.33, suggesting a potential upside of 79.83%. Radware has a consensus price target of $25.00, suggesting a potential downside of 19.30%. Given Fatpipe Inc/UT’s stronger consensus rating and higher probable upside, equities analysts plainly believe Fatpipe Inc/UT is more favorable than Radware.

Insider and Institutional Ownership

73.1% of Radware shares are held by institutional investors. 21.6% of Radware shares are held 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.

Volatility & Risk

Fatpipe Inc/UT has a beta of 2.88, indicating that its share price is 188% more volatile than the S&P 500. Comparatively, Radware has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares Fatpipe Inc/UT and Radware’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fatpipe Inc/UT	26.87%	28.42%	20.22%
Radware	5.34%	7.47%	4.26%

Earnings & Valuation

This table compares Fatpipe Inc/UT and Radware”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fatpipe Inc/UT	$19.21 million	3.82	$4.97 million	$0.39	13.31
Radware	$317.81 million	4.10	$20.26 million	$0.38	81.53

Radware has higher revenue and earnings than Fatpipe Inc/UT. Fatpipe Inc/UT is trading at a lower price-to-earnings ratio than Radware, indicating that it is currently the more affordable of the two stocks.

Summary

Fatpipe Inc/UT beats Radware on 8 of the 14 factors compared between the two stocks.

About Fatpipe Inc/UT

FatPipe is a pioneer in enterprise-class, application-aware, secure software-defined wide area network (“SD-WAN”) solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies. Organizations, large and small, have become increasingly dependent on their information technology (“IT”) network infrastructure for data access and communications, and the critical importance of network reliability, extensibility, and durability has continued to grow as the volume of traffic across those networks expands. The management, monitoring, and security of an organization’s network has become increasingly complicated in an era of growing demands from remote work, increasing connectivity points, and disparate operations, while network integrity is challenged by ever more sophisticated cyber threats. These factors are conspiring to increase an organization’s reliance on its computer networks while simultaneously making the management and maintenance of those networks more costly and complex. We are dedicated to continually improving the way organizations connect, ensuring their networks are secure, reliable, and support their continued success. Our commitment lies in empowering our customers with a seamless and dependable connectivity infrastructure that safeguards their critical data and fosters business continuity. We further aim to ensure our customers have unparalleled insights into their network operations. Through our integrated suite of software solutions, we offer our customers a reliable and secure platform to support mission-critical applications running on cloud, hybrid cloud and on-premise networks. Our core offerings include SD-WAN, secure access service edge (“SASE”), and network monitoring service (“NMS”) software solutions, each of which is typically offered to our customers as a subscription service. These solutions address a broad set of network management needs and include an integrated set of capabilities to automate the complex requirements of network optimization. The market for these network services is large, global in nature and growing at attractive rates. The total global market for SD-WAN solutions and services, our core offering, was estimated by the Maia Research Report to grow from $4.5 billion in 2022 to over $17.6 billion in 2030. The Maia Research Report also projects the total market size for SASE software and platforms to expand from $6.4 billion in 2022 to $27.2 billion in 2030, and the total market for NMS to grow from $2.0 billion to $4.4 billion over the same period. Each of these individual markets are expected to grow at a compounded rate of between 10% and 20% through 2030, with SD-WAN’s projected growth rate to be approximately 18.5% through 2030. Our principal executive office is located in Salt Lake City, UT.

About Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware’s Core Business and The Hawks’ Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.