Critical Comparison: Check Point Software Technologies (CHKP) and Twilio (TWLO)
Check Point Software Technologies (NASDAQ: CHKP) and Twilio (NYSE:TWLO) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Earnings & Valuation
This table compares Check Point Software Technologies and Twilio’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Check Point Software Technologies||$1.74 billion||9.92||$724.84 million||$4.67||22.62|
|Twilio||$277.33 million||10.02||-$41.32 million||($0.52)||-58.15|
Check Point Software Technologies has higher revenue and earnings than Twilio. Twilio 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.
This is a summary of recent recommendations for Check Point Software Technologies and Twilio, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Check Point Software Technologies||0||17||9||0||2.35|
Check Point Software Technologies presently has a consensus target price of $114.05, suggesting a potential upside of 7.95%. Twilio has a consensus target price of $37.29, suggesting a potential upside of 23.30%. Given Twilio’s stronger consensus rating and higher probable upside, analysts clearly believe Twilio is more favorable than Check Point Software Technologies.
Institutional & Insider Ownership
68.2% of Check Point Software Technologies shares are owned by institutional investors. Comparatively, 57.6% of Twilio shares are owned by institutional investors. 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.
This table compares Check Point Software Technologies and Twilio’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Check Point Software Technologies||42.80%||22.46%||15.11%|
Risk and Volatility
Check Point Software Technologies has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Twilio has a beta of 3.32, indicating that its stock price is 232% more volatile than the S&P 500.
Check Point Software Technologies beats Twilio on 8 of the 13 factors compared between the two stocks.
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.
Twilio Inc. offers Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications. The Company’s platform consists of Programmable Communications Cloud, Super Network and Business Model for Innovators. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities into their applications through its Application Programming Interfaces (APIs). Its Programmable Communications Cloud offers building blocks that enable its customers to build what they need. Its Programmable Communications Cloud includes Programmable Voice, Programmable Messaging, Programmable Video and Use Case APIs. The Super Network is its software layer that allows its customers’ software to communicate with connected devices globally. It interconnects with communications networks around the world.
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