ANSYS (NASDAQ: ANSS) and Check Point Software Technologies (NASDAQ:CHKP) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for ANSYS and Check Point Software Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANSYS 2 10 1 0 1.92
Check Point Software Technologies 0 15 14 0 2.48

ANSYS currently has a consensus price target of $114.65, indicating a potential downside of 6.06%. Check Point Software Technologies has a consensus price target of $111.24, indicating a potential downside of 0.67%. Given Check Point Software Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Check Point Software Technologies is more favorable than ANSYS.

Volatility and Risk

ANSYS has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares ANSYS and Check Point Software Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ANSYS $1.03 billion 10.04 $461.25 million $3.11 39.24
Check Point Software Technologies $1.81 billion 10.11 $893.47 million $4.50 24.89

Check Point Software Technologies has higher revenue and earnings than ANSYS. Check Point Software Technologies is trading at a lower price-to-earnings ratio than ANSYS, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

96.8% of ANSYS shares are owned by institutional investors. Comparatively, 67.8% of Check Point Software Technologies shares are owned by institutional investors. 1.3% of ANSYS shares are owned by company insiders. Comparatively, 29.0% of Check Point Software Technologies shares 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.

Profitability

This table compares ANSYS and Check Point Software Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANSYS 26.37% 13.87% 11.06%
Check Point Software Technologies 42.17% 22.02% 14.91%

Summary

Check Point Software Technologies beats ANSYS on 11 of the 14 factors compared between the two stocks.

About ANSYS

ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.

About Check Point Software Technologies

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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