SecureWorks Corp. (NASDAQ: SCWX) is one of 195 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare SecureWorks Corp. to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

SecureWorks Corp. has a beta of 3.04, suggesting that its stock price is 204% more volatile than the S&P 500. Comparatively, SecureWorks Corp.’s peers have a beta of 1.28, suggesting that their average stock price is 28% more volatile than the S&P 500.

Profitability

This table compares SecureWorks Corp. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SecureWorks Corp. -8.97% -3.32% -2.31%
SecureWorks Corp. Competitors -19.96% -51.63% -3.79%

Analyst Recommendations

This is a breakdown of current ratings and target prices for SecureWorks Corp. and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SecureWorks Corp. 2 2 5 0 2.33
SecureWorks Corp. Competitors 677 4368 7099 154 2.55

SecureWorks Corp. currently has a consensus price target of $14.00, indicating a potential upside of 34.23%. As a group, “IT Services & Consulting” companies have a potential downside of 0.53%. Given SecureWorks Corp.’s higher probable upside, analysts plainly believe SecureWorks Corp. is more favorable than its peers.

Valuation & Earnings

This table compares SecureWorks Corp. and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
SecureWorks Corp. $455.77 million -$25.29 million -20.06
SecureWorks Corp. Competitors $2.12 billion $374.78 million 36.68

SecureWorks Corp.’s peers have higher revenue and earnings than SecureWorks Corp.. SecureWorks Corp. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

7.6% of SecureWorks Corp. shares are held by institutional investors. Comparatively, 61.2% of shares of all “IT Services & Consulting” companies are held by institutional investors. 88.0% of SecureWorks Corp. shares are held by insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

SecureWorks Corp. Company Profile

Secureworks Corp. is a holding company. The Company provides intelligence-driven information security solutions. The Company is focused on protecting the Company’s clients from cyber-attacks. The Company’s solutions enable companies to fortify their cyber defenses to prevent security breaches, detect malicious activity in real time, prioritize and respond to security incidents, and predict emerging threats. The Company offered managed security and threat intelligence on a subscription basis under contracts with initial terms that typically range from one to three years and, as of February 3, 2017. The Company’s integrated suite of solutions includes Managed security, Threat intelligence, Security and risk consulting and Incident response.

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