Finjan (NASDAQ: FNJN) and China Information Technology (NASDAQ:CNIT) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Institutional & Insider Ownership

33.7% of Finjan shares are held by institutional investors. Comparatively, 1.1% of China Information Technology shares are held by institutional investors. 9.6% of Finjan shares are held by insiders. Comparatively, 45.4% of China Information Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Finjan has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, China Information Technology has a beta of 2.14, indicating that its share price is 114% more volatile than the S&P 500.

Valuation & Earnings

This table compares Finjan and China Information Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Finjan $18.39 million 3.36 $350,000.00 $0.53 4.21
China Information Technology $10.19 million 11.84 -$18.17 million N/A N/A

Finjan has higher revenue and earnings than China Information Technology.

Analyst Recommendations

This is a summary of recent recommendations for Finjan and China Information Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finjan 0 0 1 0 3.00
China Information Technology 0 0 0 0 N/A

Finjan presently has a consensus price target of $5.00, indicating a potential upside of 124.22%. Given Finjan’s higher probable upside, equities research analysts plainly believe Finjan is more favorable than China Information Technology.

Profitability

This table compares Finjan and China Information Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Finjan 37.53% 100.25% 37.40%
China Information Technology N/A N/A N/A

Summary

Finjan beats China Information Technology on 8 of the 11 factors compared between the two stocks.

Finjan Company Profile

Finjan Holdings, Inc., through its subsidiaries, operates as a cybersecurity company, provides intellectual property licensing and enforcement services. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The company’s technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also provides investments in cybersecurity technologies and intellectual property; offers cyber risk and cyber security advisory services; and develops mobile security applications. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.

China Information Technology Company Profile

China Information Technology, Inc (CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, elevator safety management, education, etc. Through continuous innovation, CNIT is aiming to leverage its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community.

Receive News & Ratings for Finjan Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Finjan and related companies with MarketBeat.com's FREE daily email newsletter.