Contrasting Zendesk (ZEN) and Finjan Holdings (FNJN)
Zendesk (NYSE: ZEN) and Finjan Holdings (NASDAQ:FNJN) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
96.1% of Zendesk shares are held by institutional investors. Comparatively, 34.2% of Finjan Holdings shares are held by institutional investors. 5.3% of Zendesk shares are held by company insiders. Comparatively, 9.6% of Finjan Holdings shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Zendesk has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, Finjan Holdings has a beta of -0.7, meaning that its stock price is 170% less volatile than the S&P 500.
Valuation & Earnings
This table compares Zendesk and Finjan Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Zendesk||$363.62 million||7.58||-$86.63 million||($1.10)||-24.93|
|Finjan Holdings||$36.60 million||1.75||$22.66 million||$0.37||6.30|
Finjan Holdings has higher revenue, but lower earnings than Zendesk. Zendesk is trading at a lower price-to-earnings ratio than Finjan Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Zendesk and Finjan Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Zendesk and Finjan Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Zendesk currently has a consensus price target of $32.50, indicating a potential upside of 18.53%. Finjan Holdings has a consensus price target of $4.00, indicating a potential upside of 71.67%. Given Finjan Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Finjan Holdings is more favorable than Zendesk.
Finjan Holdings beats Zendesk on 8 of the 13 factors compared between the two stocks.
Zendesk Company Profile
Zendesk, Inc. (Zendesk) is a software development company. The Zendesk family of products is built to work together to help organizations understand and manage customer relationships. All Zendesk products share a common interface and are being developed to support a shared services infrastructure and common customer data platform. Zendesk’s products are developed using agile software techniques, and are designed to incorporate and innovate on customer feedback obtained through beta and Early Access Programs (EAPs). Its family of products includes Zendesk Support, Zendesk Chat, Zendesk Talk, Zendesk Help Center, Zendesk Message, Zendesk Explore and Zendesk Connect. Zendesk’s developer platform allows organizations to extend the functionality of its family of products and customize the experience for their employees and customers. Key components of Zendesk’s developer platform include Zendesk Embeddables, Zendesk application program interfaces (APIs) and Zendesk Applications.
Finjan Holdings Company Profile
Finjan Holdings, Inc., through its subsidiaries, operates as a cybersecurity company, provides intellectual property licensing and enforcement services. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The companys technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also provides investments in cybersecurity technologies and intellectual property; offers cyber risk and cyber security advisory services; and develops mobile security applications. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.
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