Block (NYSE:XYZ – Get Free Report) and Cognyte Software (NASDAQ:CGNT – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
Profitability
This table compares Block and Cognyte Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Block | 12.99% | 5.54% | 3.24% |
| Cognyte Software | -1.45% | -2.24% | -0.99% |
Institutional & Insider Ownership
70.4% of Block shares are held by institutional investors. Comparatively, 72.9% of Cognyte Software shares are held by institutional investors. 10.9% of Block shares are held by company insiders. Comparatively, 62.7% of Cognyte Software shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Analyst Ratings
This is a breakdown of current ratings and price targets for Block and Cognyte Software, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Block | 1 | 10 | 23 | 3 | 2.76 |
| Cognyte Software | 1 | 2 | 1 | 0 | 2.00 |
Block presently has a consensus target price of $82.94, indicating a potential upside of 19.21%. Cognyte Software has a consensus target price of $14.00, indicating a potential upside of 46.29%. Given Cognyte Software’s higher probable upside, analysts plainly believe Cognyte Software is more favorable than Block.
Earnings and Valuation
This table compares Block and Cognyte Software”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Block | $24.12 billion | 1.75 | $2.90 billion | $4.96 | 14.03 |
| Cognyte Software | $350.63 million | 1.99 | -$12.05 million | ($0.08) | -119.63 |
Block has higher revenue and earnings than Cognyte Software. Cognyte Software is trading at a lower price-to-earnings ratio than Block, indicating that it is currently the more affordable of the two stocks.
Summary
Block beats Cognyte Software on 11 of the 15 factors compared between the two stocks.
About Block
Square, Inc. provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. The company also provides Square Point of Sale software; Cash App, which provides access to the financial system, allowing customers to electronically send, store, and spend money; Caviar, a food ordering platform for restaurants to offer food ordering, pickup and delivery, to their customers; and Square Capital that facilitates loans to sellers based on real-time payment and point-of-sale data. Square, Inc. was founded in 2009 and is headquartered in San Francisco, California.
About Cognyte Software
Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies. Cognyte Software Ltd. was incorporated in 2020 and is headquartered in Herzliya, Israel.
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