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

Valuation & Earnings

This table compares Check Point Software Technologies and its peers 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 26.33
Check Point Software Technologies Competitors $761.46 million $137.65 million -12.40

Check Point Software Technologies has higher revenue and earnings than its peers. Check Point Software Technologies 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.

Profitability

This table compares Check Point Software Technologies and its peers’ 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 -62.15% -94.01% -16.46%

Institutional and Insider Ownership

67.8% of Check Point Software Technologies shares are held by institutional investors. Comparatively, 68.6% of shares of all “Application Software” companies are held by institutional investors. 29.0% of Check Point Software Technologies shares are held by company insiders. Comparatively, 15.7% of shares of all “Application Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Check Point Software Technologies has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Check Point Software Technologies’ peers have a beta of 1.61, indicating that their average stock price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Check Point Software Technologies and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check Point Software Technologies 0 14 15 0 2.52
Check Point Software Technologies Competitors 180 1516 2891 96 2.62

Check Point Software Technologies presently has a consensus target price of $112.09, indicating a potential downside of 5.41%. As a group, “Application Software” companies have a potential upside of 4.05%. Given Check Point Software Technologies’ peers stronger consensus rating and higher probable upside, analysts clearly believe Check Point Software Technologies has less favorable growth aspects than its peers.

Summary

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

About Check Point Software Technologies

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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