Critical Contrast: Radware (RDWR) & Finjan (FNJN)
Radware (NASDAQ: RDWR) and Finjan (NASDAQ:FNJN) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
This table compares Radware and Finjan’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
61.7% of Radware shares are owned by institutional investors. Comparatively, 34.1% of Finjan shares are owned by institutional investors. 21.6% of Radware shares are owned by insiders. Comparatively, 9.6% of Finjan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for Radware and Finjan, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Radware presently has a consensus price target of $20.83, indicating a potential upside of 2.43%. Finjan has a consensus price target of $4.00, indicating a potential upside of 81.82%. Given Finjan’s higher possible upside, analysts clearly believe Finjan is more favorable than Radware.
Volatility and Risk
Radware has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Finjan has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500.
Earnings and Valuation
This table compares Radware and Finjan’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Radware||$196.59 million||4.50||-$8.65 million||($0.26)||-78.23|
Finjan has lower revenue, but higher earnings than Radware. Radware is trading at a lower price-to-earnings ratio than Finjan, indicating that it is currently the more affordable of the two stocks.
Radware Ltd. is a provider of cyber security and application delivery solutions. The Company’s solutions incorporate Distributed Denial of Service protection, Web application firewall (WAF) and Application Delivery Controllers (ADC) technologies to enable its customers to provide cyber-attack mitigation solutions for a range of applications. The Company’s products and activities are focused on protecting against cyber-attacks and ensuring optimal application service level for enterprises’ and carriers’ data centers. Its solutions include application and network security, and application delivery. Its application and network Security products include DefensePro Attack Mitigation Device, AppWall Web Application Firewall, DefenseFlow Cyber Command and Control application, and DefensePipe Cloud Scrubbing Service. Its application delivery products include Alteon NG, LinkProof NG and FastView. Its management solutions include APSolute Vision, application performance monitoring and vDirect.
Finjan Holdings, Inc., through its subsidiaries, operates as a cybersecurity company, provides intellectual property licensing and enforcement services. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The companys technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also provides investments in cybersecurity technologies and intellectual property; offers cyber risk and cyber security advisory services; and develops mobile security applications. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.
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