Critical Review: CyberArk Software (CYBR) and Its Rivals
CyberArk Software (NASDAQ: CYBR) is one of 63 public companies in the “Application Software” industry, but how does it compare to its peers? We will compare CyberArk Software to related companies based on the strength of its analyst recommendations, dividends, valuation, risk, profitability, earnings and institutional ownership.
Volatility and Risk
CyberArk Software has a beta of 2.58, suggesting that its share price is 158% more volatile than the S&P 500. Comparatively, CyberArk Software’s peers have a beta of 1.68, suggesting that their average share price is 68% more volatile than the S&P 500.
This table compares CyberArk Software and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CyberArk Software Competitors||-58.90%||-92.87%||-15.85%|
Insider and Institutional Ownership
81.7% of CyberArk Software shares are held by institutional investors. Comparatively, 70.8% of shares of all “Application Software” companies are held by institutional investors. 16.0% of shares of all “Application Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares CyberArk Software and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|CyberArk Software||$235.84 million||$35.17 million||54.41|
|CyberArk Software Competitors||$765.20 million||$136.59 million||-9.99|
CyberArk Software’s peers have higher revenue and earnings than CyberArk Software. CyberArk Software is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current ratings and recommmendations for CyberArk Software and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CyberArk Software Competitors||224||1654||2832||109||2.59|
CyberArk Software currently has a consensus price target of $49.94, suggesting a potential upside of 17.67%. As a group, “Application Software” companies have a potential upside of 0.92%. Given CyberArk Software’s higher probable upside, analysts plainly believe CyberArk Software is more favorable than its peers.
CyberArk Software beats its peers on 7 of the 13 factors compared.
About CyberArk Software
CyberArk Software Ltd is an Israel-based provider of information technology (IT) security solutions that protects organizations from cyber-attacks. The Company’s software solutions are focused on protecting privileged accounts, which have become a critical target in the lifecycle of cyber-attacks. The Company’s Privileged Account Security Solution consists of various products, such as Shares Technology Platform, Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, CyberArk-Conjur, Endpoint Privilege Manager and On-Demand Privileges Manager. The Company’s products provide protection against external and internal cyber threats and enables detection and neutralization of attacks. The Company’s Enterprise Password Vault provides customers with a tool to manage and protect all privileged accounts across an entire organization, including physical, virtual or cloud-based assets.
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