Comparing Check Point Software Technologies (CHKP) and Its Rivals

Check Point Software Technologies (NASDAQ: CHKP) is one of 65 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its competitors? We will compare Check Point Software Technologies to similar businesses based on the strength of its institutional ownership, analyst recommendations, profitability, risk, dividends, valuation and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Check Point Software Technologies 42.17% 22.02% 14.91%
Check Point Software Technologies Competitors -61.75% -91.30% -15.94%

Insider & Institutional Ownership

67.8% of Check Point Software Technologies shares are owned by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are owned by institutional investors. 29.0% of Check Point Software Technologies shares are owned by company insiders. Comparatively, 15.7% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Check Point Software Technologies and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Check Point Software Technologies $1.81 billion $893.47 million 26.17
Check Point Software Technologies Competitors $761.46 million $137.65 million -12.38

Check Point Software Technologies has higher revenue and earnings than its competitors. Check Point Software Technologies is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Check Point Software Technologies has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Check Point Software Technologies’ competitors have a beta of 1.60, indicating that their average share price is 60% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Check Point Software Technologies and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check Point Software Technologies 0 15 15 0 2.50
Check Point Software Technologies Competitors 179 1508 2862 96 2.62

Check Point Software Technologies currently has a consensus target price of $111.73, indicating a potential downside of 5.12%. As a group, “Application Software” companies have a potential upside of 4.07%. Given Check Point Software Technologies’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Check Point Software Technologies has less favorable growth aspects than its competitors.

Summary

Check Point Software Technologies beats its competitors on 7 of the 13 factors compared.

Check Point Software Technologies Company Profile

Check Point Software Technologies Ltd. (Check point) develops, markets and supports a range of products and services for information technology (IT) security. The Company’s products and services are sold to enterprises, service providers, small and medium sized businesses and consumers. It offers enterprises a platform to deploy independent, modular and interoperable security applications (Software Blades), such as firewall, virtual private network (VPN), intrusion prevention system (IPS), Application Control, Anti-Bot, antivirus, data loss prevention (DLP), policy management, event analysis or multi-domain management. The Company offers Software Blades grouped into functional packages to address specific security issues. It has product offerings under these packages, which include Next Generation Firewall, Next Generation Threat Prevention, Next Generation Secure Web Gateway and Next Generation Data Protection.

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