Palo Alto Networks (NYSE: PANW) and Logitech (NASDAQ:LOGI) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
This table compares Palo Alto Networks and Logitech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Palo Alto Networks||-9.96%||-14.74%||-3.07%|
Palo Alto Networks has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Logitech has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Earnings & Valuation
This table compares Palo Alto Networks and Logitech’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Palo Alto Networks||$1.76 billion||10.11||-$216.60 million||($1.71)||-113.36|
|Logitech||$2.21 billion||2.67||$205.87 million||$1.16||30.93|
Logitech has higher revenue and earnings than Palo Alto Networks. Palo Alto Networks is trading at a lower price-to-earnings ratio than Logitech, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Palo Alto Networks and Logitech, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palo Alto Networks||1||4||36||0||2.85|
Palo Alto Networks presently has a consensus price target of $183.97, indicating a potential downside of 5.09%. Logitech has a consensus price target of $45.80, indicating a potential upside of 27.65%. Given Logitech’s higher probable upside, analysts clearly believe Logitech is more favorable than Palo Alto Networks.
Insider and Institutional Ownership
82.1% of Palo Alto Networks shares are held by institutional investors. Comparatively, 35.1% of Logitech shares are held by institutional investors. 4.8% of Palo Alto Networks shares are held by insiders. Comparatively, 2.2% of Logitech shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Logitech pays an annual dividend of $0.41 per share and has a dividend yield of 1.1%. Palo Alto Networks does not pay a dividend. Logitech pays out 35.3% of its earnings in the form of a dividend.
Logitech beats Palo Alto Networks on 9 of the 16 factors compared between the two stocks.
About Palo Alto Networks
Palo Alto Networks, Inc. provides security platform solutions worldwide. Its platform includes Next-Generation Firewall that delivers application, user, and content visibility and control, as well as protection against network-based cyber threats; Advanced Endpoint Protection, which prevents cyber-attacks that exploit software vulnerabilities on various fixed, mobile, and virtual endpoints and servers; and Threat Intelligence Cloud, which offers central intelligence capabilities, security for software as a service applications, and automated delivery of preventative measures against cyber-attacks. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances deployed on an end-customer's network as a virtual or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also offers subscription services covering the areas of threat prevention, uniform resource locator filtering, malware and persistent threat, laptop and mobile device protection, and firewall, as well as cyber-attack, threat intelligence, and content control. In addition, the company provides support services; and professional services, including application traffic management, solution design and planning, configuration, and firewall migration, as well as online and classroom-style education training services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was founded in 2005 and is headquartered in Santa Clara, California.
Logitech International S.A., through its subsidiaries, designs, manufactures, and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms worldwide. The company offers portable wireless Bluetooth speakers, PC speakers, PC headsets, in-ear headphones, and wireless audio wearables; gaming mice, keyboards, headsets, mousepads, and steering wheels and flight sticks; and audio and video, and other products that connect small and medium sized user groups. It also provides keyboards and covers for tablets and smartphones, as well as other accessories for mobile devices; pointing devices, such as PC and Mac-related mice, touchpads, and presenters; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combos; PC-based Webcams; and remote control and home automation products. The company sells its products through direct sales to retailers and e-tailers, as well as indirect sales through distributors. Its channel network includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers, and online merchants. The company was founded in 1981 and is headquartered in Lausanne, Switzerland.
Receive News & Ratings for Palo Alto Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Palo Alto Networks and related companies with MarketBeat.com's FREE daily email newsletter.