Greenlane (NASDAQ:GNLN) vs. Check Point Software Technologies (NASDAQ:CHKP) Critical Review

Greenlane (NASDAQ:GNLN) and Check Point Software Technologies (NASDAQ:CHKP) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

14.0% of Greenlane shares are held by institutional investors. Comparatively, 98.5% of Check Point Software Technologies shares are held by institutional investors. 13.0% of Greenlane shares are held by company insiders. Comparatively, 29.0% of Check Point Software Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Greenlane has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Greenlane	-4,630.56%	-282.11%	-240.74%
Check Point Software Technologies	31.74%	34.08%	12.43%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greenlane	$4.36 million	0.18	-$85.58 million	($58.92)	-0.02
Check Point Software Technologies	$2.73 billion	5.39	$1.06 billion	$8.31	17.32

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Greenlane and Check Point Software Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greenlane	1	0	0	0	1.00
Check Point Software Technologies	0	20	10	0	2.33

Check Point Software Technologies has a consensus target price of $151.32, indicating a potential upside of 5.11%. Given Check Point Software Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Check Point Software Technologies is more favorable than Greenlane.

Summary

Check Point Software Technologies beats Greenlane on 12 of the 13 factors compared between the two stocks.

About Greenlane

Greenlane Holdings, Inc. develops and distributes cannabis accessories, vape solutions, and lifestyle products in the United States, Canada, and Europe. It operates in two segments, Consumer Goods and Industrial Goods. The company provides consumption accessories, vaporizers, pipes, rolling papers, grinders, and apparel lines, as well as bubblers, rigs, other smoking and vaporization related accessories, and merchandise. It offers its products under the Groove, Eyce, DaVinci, Higher Standards, Pollen Gear, Marley Natural, and Keith Haring brands. The company also operates e-commerce websites, such as Vapor.com, Vaposhop.com, DaVinciVaporizer.com, PuffItUp.com, HigherStandards.com, EyceMolds.com, and MarleyNaturalShop.com. It serves customers through smoke shops, cannabis dispensaries, and specialty retailers. The company was founded in 2005 and is headquartered in Boca Raton, Florida.

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.