Head to Head Review: JFrog (NASDAQ:FROG) versus Check Point Software Technologies (NASDAQ:CHKP)

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

Institutional and Insider Ownership

98.5% of Check Point Software Technologies shares are held by institutional investors. Comparatively, 85.0% of JFrog shares are held by institutional investors. 29.0% of Check Point Software Technologies shares are held by insiders. Comparatively, 11.8% of JFrog shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Check Point Software Technologies	37.93%	38.80%	15.60%
JFrog	-7.35%	-2.71%	-1.80%

Earnings & Valuation

This table compares Check Point Software Technologies and JFrog”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Check Point Software Technologies	$2.73 billion	5.16	$1.06 billion	$9.77	14.11
JFrog	$531.84 million	19.55	-$71.82 million	($0.37)	-227.86

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

Risk and Volatility

Check Point Software Technologies has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, JFrog has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Check Point Software Technologies and JFrog, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check Point Software Technologies	0	19	8	0	2.30
JFrog	1	1	21	0	2.87

Check Point Software Technologies currently has a consensus target price of $149.48, suggesting a potential upside of 8.42%. JFrog has a consensus target price of $109.71, suggesting a potential upside of 30.13%. Given JFrog’s stronger consensus rating and higher probable upside, analysts plainly believe JFrog is more favorable than Check Point Software Technologies.

Summary

Check Point Software Technologies beats JFrog on 9 of the 14 factors compared between the two stocks.

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.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.