Check Point Software Technologies (CHKP) versus Perion Network (PERI) Critical Analysis

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Check Point Software Technologies and Perion Network, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check Point Software Technologies 0 17 9 0 2.35
Perion Network 0 1 0 0 2.00

Check Point Software Technologies currently has a consensus price target of $114.05, indicating a potential upside of 10.51%. Given Check Point Software Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Check Point Software Technologies is more favorable than Perion Network.

Risk & Volatility

Check Point Software Technologies has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Perion Network has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Valuation & Earnings

This table compares Check Point Software Technologies and Perion Network’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Check Point Software Technologies $1.74 billion 9.69 $724.84 million $4.68 22.05
Perion Network $312.79 million 0.28 $200,000.00 ($0.46) -2.41

Check Point Software Technologies has higher revenue and earnings than Perion Network. Perion Network 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Check Point Software Technologies 42.80% 22.46% 15.11%
Perion Network -12.50% 7.83% 4.54%

Insider and Institutional Ownership

71.7% of Check Point Software Technologies shares are held by institutional investors. Comparatively, 19.4% of Perion Network shares are held by institutional investors. 29.0% of Check Point Software Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

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

Check Point Software Technologies Company Profile

Check Point Software Technologies Ltd. (Check point) develops, markets and supports a range of products and services for information technology (IT) security. The Company’s products and services are sold to enterprises, service providers, small and medium sized businesses and consumers. It offers enterprises a platform to deploy independent, modular and interoperable security applications (Software Blades), such as firewall, virtual private network (VPN), intrusion prevention system (IPS), Application Control, Anti-Bot, antivirus, data loss prevention (DLP), policy management, event analysis or multi-domain management. The Company offers Software Blades grouped into functional packages to address specific security issues. It has product offerings under these packages, which include Next Generation Firewall, Next Generation Threat Prevention, Next Generation Secure Web Gateway and Next Generation Data Protection.

Perion Network Company Profile

Perion Network Ltd. is a global technology company. It is engaged in delivering advertising solutions to brands and publishers. It operates through High Impact Advertising solutions segment. It provides execution, ranging from high-impact advertisement formats to branded search, and a unified social and mobile programmatic platform. Its business solutions include Undertone, Codefuel, Growmobile, IncrediMail and Smilebox. Undertone offers engaging digital advertising, which is designed to capture consumer attention and drive engagement, delivering these advertisements across a portfolio of Websites and mobile applications. CodeFuel is an engagement and monetization suite delivering solutions for both content publishers and advertisers. Growmobile offers automated marketing solutions ranging from social advertising to user engagement. IncrediMail is a unified messaging application. Smilebox is a photo sharing and social expression product and offers various formats, themes and styles.

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