Critical Analysis: Audioeye (NASDAQ:AEYE) and Check Point Software Technologies (NASDAQ:CHKP)

Audioeye (NASDAQ:AEYE) and Check Point Software Technologies (NASDAQ:CHKP) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Audioeye	-10.92%	121.59%	15.45%
Check Point Software Technologies	37.93%	38.80%	15.60%

Earnings & Valuation

This table compares Audioeye and Check Point Software Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Audioeye	$41.99 million	2.40	-$3.08 million	($0.36)	-22.30
Check Point Software Technologies	$2.76 billion	5.19	$1.06 billion	$9.77	14.38

Check Point Software Technologies has higher revenue and earnings than Audioeye. Audioeye 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Audioeye and Check Point Software Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	1	4	0	2.50
Check Point Software Technologies	0	19	9	0	2.32

Audioeye presently has a consensus target price of $14.62, indicating a potential upside of 82.15%. Check Point Software Technologies has a consensus target price of $149.50, indicating a potential upside of 6.44%. Given Audioeye’s stronger consensus rating and higher probable upside, analysts clearly believe Audioeye is more favorable than Check Point Software Technologies.

Volatility & Risk

Audioeye has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Insider & Institutional Ownership

51.1% of Audioeye shares are owned by institutional investors. Comparatively, 98.5% of Check Point Software Technologies shares are owned by institutional investors. 25.9% of Audioeye shares are owned by insiders. Comparatively, 29.0% of Check Point Software Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Check Point Software Technologies beats Audioeye on 10 of the 14 factors compared between the two stocks.

About Audioeye

AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.

About Check Point Software Technologies

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against fifth generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile. In addition, the company offers security gateways and software platforms that support small and medium sized business. Further, it provides cloud network security, cloud native application protection, security and posture management, cloud identity and entitlement, cloud workload protection, cloud detection and response, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Additionally, the company offers technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products. It sells its products through distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel.