Reviewing CyberArk Software (CYBR) & New Relic (NEWR)

CyberArk Software (NASDAQ: CYBR) and New Relic (NYSE:NEWR) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CyberArk Software and New Relic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CyberArk Software 1 8 8 0 2.41
New Relic 0 2 11 0 2.85

CyberArk Software presently has a consensus target price of $49.06, suggesting a potential upside of 13.86%. New Relic has a consensus target price of $51.64, suggesting a potential upside of 2.64%. Given CyberArk Software’s higher probable upside, equities research analysts clearly believe CyberArk Software is more favorable than New Relic.

Risk and Volatility

CyberArk Software has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500. Comparatively, New Relic has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares CyberArk Software and New Relic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CyberArk Software 11.93% 9.13% 6.77%
New Relic -20.68% -29.19% -16.58%

Earnings & Valuation

This table compares CyberArk Software and New Relic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CyberArk Software $235.84 million 5.40 $35.17 million $0.78 55.24
New Relic $284.97 million 9.62 -$46.54 million ($1.13) -44.52

CyberArk Software has higher revenue, but lower earnings than New Relic. New Relic is trading at a lower price-to-earnings ratio than CyberArk Software, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

79.3% of CyberArk Software shares are held by institutional investors. Comparatively, 74.0% of New Relic shares are held by institutional investors. 23.1% of New Relic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

CyberArk Software beats New Relic on 8 of the 13 factors compared between the two stocks.

About CyberArk Software

CyberArk Software Ltd is an Israel-based provider of information technology (IT) security solutions that protects organizations from cyber-attacks. The Company’s software solutions are focused on protecting privileged accounts, which have become a critical target in the lifecycle of cyber-attacks. The Company’s Privileged Account Security Solution consists of various products, such as Shares Technology Platform, Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, CyberArk-Conjur, Endpoint Privilege Manager and On-Demand Privileges Manager. The Company’s products provide protection against external and internal cyber threats and enables detection and neutralization of attacks. The Company’s Enterprise Password Vault provides customers with a tool to manage and protect all privileged accounts across an entire organization, including physical, virtual or cloud-based assets.

About New Relic

New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.

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