Critical Review: Check Point Software Technologies (NASDAQ:CHKP) versus Greenlane (NASDAQ:GNLN)

Check Point Software Technologies (NASDAQ:CHKP) and Greenlane (NASDAQ:GNLN) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Profitability

This table compares Check Point Software Technologies and Greenlane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Check Point Software Technologies	31.74%	34.08%	12.43%
Greenlane	-4,630.56%	-282.11%	-240.74%

Valuation and Earnings

This table compares Check Point Software Technologies and Greenlane”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Check Point Software Technologies	$2.73 billion	5.51	$1.06 billion	$8.31	17.71
Greenlane	$4.36 million	0.14	-$85.58 million	($58.92)	-0.02

Check Point Software Technologies has higher revenue and earnings than Greenlane. Greenlane is trading at a lower price-to-earnings ratio than Check Point Software Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Check Point Software Technologies and Greenlane, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check Point Software Technologies	0	20	10	0	2.33
Greenlane	1	0	0	0	1.00

Check Point Software Technologies presently has a consensus target price of $151.32, indicating a potential upside of 2.81%. Given Check Point Software Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Check Point Software Technologies is more favorable than Greenlane.

Volatility & Risk

Check Point Software Technologies has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Greenlane has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Check Point Software Technologies shares are held by institutional investors. Comparatively, 14.0% of Greenlane shares are held by institutional investors. 29.0% of Check Point Software Technologies shares are held by company insiders. Comparatively, 13.0% of Greenlane shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Check Point Software Technologies beats Greenlane on 13 of the 14 factors compared between the two stocks.

About Check Point Software Technologies

Check Point Software Technologies is a cybersecurity company that develops products and services to protect organizations’ networks, cloud environments, devices, and users. Its offerings include network security appliances and software, cloud security tools, endpoint and workspace protection, and centralized security management. The company’s product families include Quantum for network security, CloudGuard for cloud security, and Harmony for user and endpoint protection. Check Point also provides threat prevention, security research, and related support services to businesses and other organizations around the world.

About Greenlane

Greenlane Holdings, Inc. is a cannabis ancillary-products company that has historically operated as a distributor, retailer and developer of branded products for the cannabis and lifestyle markets. The company has focused on products that support the consumption, storage and presentation of cannabis and related goods, rather than cultivating or selling cannabis itself. Greenlane’s product offerings have included vaporizers, glassware, smoking accessories, packaging and other consumer products. Through its wholesale and e-commerce operations, the company has distributed products from third-party brands and developed proprietary brands, including Higher Standards, Groove and Pollen Gear.