Analyzing Check Point Software Technologies (CHKP) & The Competition
Check Point Software Technologies (NASDAQ: CHKP) is one of 63 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its peers? We will compare Check Point Software Technologies to similar businesses based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, dividends, valuation and risk.
Risk and Volatility
Check Point Software Technologies has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Check Point Software Technologies’ peers have a beta of 1.68, meaning that their average share price is 68% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Check Point Software Technologies and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Check Point Software Technologies||0||15||14||0||2.48|
|Check Point Software Technologies Competitors||231||1671||2865||109||2.58|
Check Point Software Technologies presently has a consensus target price of $111.24, indicating a potential downside of 0.67%. As a group, “Application Software” companies have a potential upside of 10.88%. Given Check Point Software Technologies’ peers stronger consensus rating and higher possible upside, analysts clearly believe Check Point Software Technologies has less favorable growth aspects than its peers.
This table compares Check Point Software Technologies and its peers’ 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%|
|Check Point Software Technologies Competitors||-61.35%||-93.07%||-16.03%|
Institutional and Insider Ownership
67.8% of Check Point Software Technologies shares are owned by institutional investors. Comparatively, 69.4% of shares of all “Application Software” companies are owned by institutional investors. 29.0% of Check Point Software Technologies shares are owned by company insiders. Comparatively, 16.1% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Check Point Software Technologies and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Check Point Software Technologies||$1.81 billion||$893.47 million||24.89|
|Check Point Software Technologies Competitors||$778.62 million||$141.39 million||-10.26|
Check Point Software Technologies has higher revenue and earnings than its peers. Check Point Software Technologies is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Check Point Software Technologies beats its peers on 7 of the 13 factors compared.
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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