Cyberark Software (NASDAQ: CYBR) and Check Point Software Technologies (NASDAQ:CHKP) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Institutional and Insider Ownership
75.8% of Cyberark Software shares are held by institutional investors. Comparatively, 71.7% of Check Point Software Technologies 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Cyberark Software and Check Point Software Technologies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Cyberark Software | 9.24% | 7.19% | 5.33% |
Check Point Software Technologies | 42.80% | 22.46% | 15.11% |
Volatility and Risk
Cyberark Software has a beta of 2.58, suggesting that its share price is…