Financial Review: Square (SQ) & Finjan Holdings (FNJN)
Square (NYSE: SQ) and Finjan Holdings (NASDAQ:FNJN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Risk and Volatility
Square has a beta of 4.78, suggesting that its share price is 378% more volatile than the S&P 500. Comparatively, Finjan Holdings has a beta of -0.52, suggesting that its share price is 152% less volatile than the S&P 500.
This table compares Square and Finjan Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
53.8% of Square shares are held by institutional investors. Comparatively, 34.2% of Finjan Holdings shares are held by institutional investors. 32.7% of Square shares are held by insiders. Comparatively, 9.6% of Finjan Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Square and Finjan Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Square currently has a consensus target price of $24.75, suggesting a potential downside of 17.33%. Finjan Holdings has a consensus target price of $4.00, suggesting a potential upside of 72.41%. Given Finjan Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Finjan Holdings is more favorable than Square.
Earnings and Valuation
This table compares Square and Finjan Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Square||$1.90 billion||6.05||-$41.20 million||($0.21)||-142.56|
|Finjan Holdings||$36.60 million||1.74||$22.66 million||$0.37||6.27|
Finjan Holdings has higher revenue, but lower earnings than Square. Square is trading at a lower price-to-earnings ratio than Finjan Holdings, indicating that it is currently the more affordable of the two stocks.
Finjan Holdings beats Square on 7 of the 13 factors compared between the two stocks.
Square, Inc. (Square) is a commerce ecosystem. The Company enables its sellers start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. Once a seller downloads the Square Point of Sale mobile application, they can take their first payment. With its offering, a seller can accept payments in person via magnetic stripe (a swipe), Europay, MasterCard, and Visa (EMV) (a dip), or Near Field Communication (NFC) (a tap); or online via Square Invoices, Square Virtual Terminal, or the seller’s Website. Once on its system, sellers gain access to technology and features, such as reporting and analytics, next-day settlements, digital receipts, payment dispute management and chargeback protection, and Payment Card Industry (PCI) compliance. On the consumer (buyer) side, Square Cash offers individuals access to a way to send and receive money.
About Finjan Holdings
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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