Head-To-Head Comparison: AvePoint (NASDAQ:AVPT) vs. SecureWorks (NASDAQ:SCWX)

AvePoint (NASDAQ:AVPT – Get Rating) and SecureWorks (NASDAQ:SCWX – Get Rating) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Valuation & Earnings

This table compares AvePoint and SecureWorks’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvePoint	$232.34 million	5.03	-$38.69 million	($0.21)	-29.05
SecureWorks	$463.48 million	1.58	-$114.50 million	($1.35)	-6.34

AvePoint has higher earnings, but lower revenue than SecureWorks. AvePoint is trading at a lower price-to-earnings ratio than SecureWorks, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

AvePoint has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, SecureWorks has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for AvePoint and SecureWorks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvePoint	0	2	0	0	2.00
SecureWorks	1	1	0	0	1.50

AvePoint currently has a consensus target price of $5.88, indicating a potential downside of 3.69%. SecureWorks has a consensus target price of $8.50, indicating a potential downside of 0.70%. Given SecureWorks’ higher probable upside, analysts clearly believe SecureWorks is more favorable than AvePoint.

Institutional and Insider Ownership

41.4% of AvePoint shares are owned by institutional investors. Comparatively, 10.4% of SecureWorks shares are owned by institutional investors. 25.7% of AvePoint shares are owned by company insiders. Comparatively, 83.1% of SecureWorks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares AvePoint and SecureWorks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AvePoint	-16.21%	-16.91%	-9.79%
SecureWorks	-24.70%	-12.95%	-8.72%

Summary

AvePoint beats SecureWorks on 7 of the 13 factors compared between the two stocks.

About AvePoint

(Get Rating)

AvePoint, Inc. provides Microsoft 365 data management solutions worldwide. It offers SaaS platform cloud-hosted collaboration systems by providing suite of software products. The company focuses on data protection, governance, compliance management extensions for Microsoft 365, Dynamics 365, Salesforce, and Google Workspace. In addition, the company offers software solutions for Microsoft 365, including microsoft teams, sharepoint online, exchange online, onedrive, project online, planner, yammer and other public folders. The company was incorporated in 2001 and is headquartered in Jersey City, New Jersey.

About SecureWorks

(Get Rating)

SecureWorks Corp. is a cyber security company engaged in the provision of information security solutions. The firm’s products include extended detection and response, managed detection and response, and vulnerability management. Its services include managed security, incident response, threat intelligence, security consulting, and adversarial security testing. The company was founded on 1999 and is headquartered in Atlanta, GA.