SecureWorks Corp. (NASDAQ: SCWX) is one of 183 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare SecureWorks Corp. to similar businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.

Institutional and Insider Ownership

7.5% of SecureWorks Corp. shares are owned by institutional investors. Comparatively, 61.5% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 88.0% of SecureWorks Corp. shares are owned by insiders. Comparatively, 16.4% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for SecureWorks Corp. and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SecureWorks Corp. 2 2 5 0 2.33
SecureWorks Corp. Competitors 719 4533 7275 162 2.54

SecureWorks Corp. currently has a consensus price target of $14.00, suggesting a potential upside of 44.63%. As a group, “IT Services & Consulting” companies have a potential upside of 7.49%. Given SecureWorks Corp.’s higher possible upside, research analysts plainly believe SecureWorks Corp. is more favorable than its competitors.

Profitability

This table compares SecureWorks Corp. and its competitors’ 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 -19.90% -254.97% -3.79%

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
SecureWorks Corp. $429.50 million -$38.21 million -18.98
SecureWorks Corp. Competitors $2.79 billion $290.83 million 291.64

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

Summary

SecureWorks Corp. competitors beat SecureWorks Corp. on 6 of the 11 factors compared.

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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