Gigamon (GIMO) versus FireEye (FEYE) Critical Analysis
Gigamon (NYSE: GIMO) and FireEye (NASDAQ:FEYE) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Earnings & Valuation
This table compares Gigamon and FireEye’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gigamon||$307.25 million||5.16||$10.55 million||$0.07||605.00|
|FireEye||$730.32 million||3.99||-$161.27 million||($2.00)||-8.01|
Gigamon has higher revenue, but lower earnings than FireEye. FireEye is trading at a lower price-to-earnings ratio than Gigamon, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Gigamon and FireEye, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gigamon presently has a consensus target price of $46.30, indicating a potential upside of 9.33%. FireEye has a consensus target price of $16.11, indicating a potential upside of 0.61%. Given Gigamon’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gigamon is more favorable than FireEye.
Risk and Volatility
Gigamon has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, FireEye has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
This table compares Gigamon and FireEye’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
98.0% of Gigamon shares are held by institutional investors. Comparatively, 67.7% of FireEye shares are held by institutional investors. 4.5% of Gigamon shares are held by insiders. Comparatively, 2.4% of FireEye shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Gigamon beats FireEye on 11 of the 13 factors compared between the two stocks.
Gigamon Inc. offers a solution that delivers visibility and control of data-in-motion traversing enterprise, federal and service provider networks. The Company’s Visibility Platform consists of a distributed system of nodes (that in combination establish a Visibility Fabric). The Visibility Platform includes physical appliances and virtual nodes that can be deployed in data centers, central offices, virtualized/private cloud/public cloud environments, and small form-factor remote site appliances, which in combination enable pervasive visibility of network infrastructures. Its GigaSECURE Security Delivery Platform enables security teams and information technology (IT) personnel to gain visibility into their IT infrastructure by forwarding selected traffic of interest from network, server and remote location infrastructure to security, management, analysis and compliance tools in a manner that is optimized for specific uses or functions.
FireEye, Inc. provides intelligence-based cybersecurity solutions that allow organizations to prepare for, prevent, respond to and remediate cyber-attacks. The Company offers various products, such as Threat Detection and Prevention Solutions, which include network security products (NX and Multi-vector Virtual Execution (MVX) Compute Node Series), e-mail security products (EX Series and e-mail threat prevention cloud (ETP), endpoint security products (HX Series) and content security products (FX Series); security management and orchestration products, which include Central Management System and FireEye Security Orchestrator, and forensics and investigation products, which include Threat Analytics Platform (TAP), Malware Analysis (AX Series) and Enterprise Forensics (PX Series and IA Series). Its Subscription and Services offers Threat Intelligence Subscriptions, Security-as-a-Service Offerings, and Customer Support and Maintenance Services.
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