Citrix Systems (NASDAQ: CTXS) and Gigamon (NYSE:GIMO) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Profitability

This table compares Citrix Systems and Gigamon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citrix Systems 15.08% 31.07% 11.53%
Gigamon 0.95% 0.41% 0.28%

Insider and Institutional Ownership

93.6% of Citrix Systems shares are owned by institutional investors. Comparatively, 97.8% of Gigamon shares are owned by institutional investors. 0.4% of Citrix Systems shares are owned by company insiders. Comparatively, 4.5% of Gigamon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Citrix Systems has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Gigamon has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Earnings & Valuation

This table compares Citrix Systems and Gigamon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Citrix Systems $3.44 billion 3.50 $987.12 million $2.97 26.77
Gigamon $307.25 million 5.22 $10.55 million $0.07 612.86

Citrix Systems has higher revenue and earnings than Gigamon. Citrix Systems is trading at a lower price-to-earnings ratio than Gigamon, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Citrix Systems and Gigamon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citrix Systems 2 9 8 0 2.32
Gigamon 0 7 5 0 2.42

Citrix Systems presently has a consensus price target of $89.60, indicating a potential upside of 12.70%. Gigamon has a consensus price target of $46.30, indicating a potential upside of 7.93%. Given Citrix Systems’ higher probable upside, equities analysts plainly believe Citrix Systems is more favorable than Gigamon.

Summary

Citrix Systems beats Gigamon on 8 of the 14 factors compared between the two stocks.

Citrix Systems Company Profile

Citrix Systems, Inc. offers Enterprise and Service Provider products, which include Workspace Services solutions and Delivery Networking products. The Company’s Enterprise and Service Provider products include Cloud Services solutions, and related license updates and maintenance, support and professional services. The Company’s NetScaler nCore Technology is an architecture that enables execution of multiple packet engines in parallel. The Company’s workspace services include Application Virtualization and virtual desktop infrastructure (VDI), Enterprise Mobility Management and Citrix Workspace Suite. The Company’s NetScaler ADC is a software-defined application delivery controller (ADC) and load balancer. The Company’s Cloud Services include ShareFile and Citrix Cloud. It provides various ways for customers to receive upgrades, support and maintenance for products, which include Software Maintenance, Subscription Advantage, Technical Support Services and Hardware Maintenance.

Gigamon Company Profile

Gigamon Inc. offers a solution that delivers visibility and control of data-in-motion traversing enterprise, federal and service provider networks. The Company’s Visibility Platform consists of a distributed system of nodes (that in combination establish a Visibility Fabric). The Visibility Platform includes physical appliances and virtual nodes that can be deployed in data centers, central offices, virtualized/private cloud/public cloud environments, and small form-factor remote site appliances, which in combination enable pervasive visibility of network infrastructures. Its GigaSECURE Security Delivery Platform enables security teams and information technology (IT) personnel to gain visibility into their IT infrastructure by forwarding selected traffic of interest from network, server and remote location infrastructure to security, management, analysis and compliance tools in a manner that is optimized for specific uses or functions.

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