SecureWorks (SCWX) & IMS Health (IMS) Critical Survey
SecureWorks (NASDAQ: SCWX) and IMS Health (NYSE:IMS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
8.0% of SecureWorks shares are owned by institutional investors. Comparatively, 90.3% of IMS Health shares are owned by institutional investors. 88.0% of SecureWorks shares are owned by company insiders. Comparatively, 2.5% of IMS Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares SecureWorks and IMS Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for SecureWorks and IMS Health, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SecureWorks currently has a consensus target price of $14.00, suggesting a potential upside of 42.28%. Given SecureWorks’ higher possible upside, equities research analysts clearly believe SecureWorks is more favorable than IMS Health.
Earnings and Valuation
This table compares SecureWorks and IMS Health’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SecureWorks||$429.50 million||1.86||-$38.21 million||($0.52)||-18.92|
IMS Health has lower revenue, but higher earnings than SecureWorks. SecureWorks is trading at a lower price-to-earnings ratio than IMS Health, indicating that it is currently the more affordable of the two stocks.
IMS Health beats SecureWorks on 5 of the 9 factors compared between the two stocks.
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.
About IMS Health
IMS Health Holdings, Inc. (IMS) is an information and technology services company that provides solutions to its clients in the healthcare industry. The Company has its presence in over 100 countries. The Company’s data set contains over 10 petabytes of data and over 500 million patient records. It serves healthcare organizations and life science companies, including pharmaceutical, biotechnology, consumer health and medical device manufacturers, as well as distributors, providers, payers, government agencies, policymakers, researchers and the financial community. The Company’s principal information offerings include national information offerings, sub-national information offerings and OneKey. Its technology services offerings include technology solutions, real-world evidence solutions, and workflow analytics and consulting services. It offers technology services that include data warehousing, information technology (IT) outsourcing, software applications and other services.
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