Contrasting Check Point Software Technologies (CHKP) & ANSYS (ANSS)

Check Point Software Technologies (NASDAQ: CHKP) and ANSYS (NASDAQ:ANSS) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Check Point Software Technologies 0 15 14 0 2.48
ANSYS 2 10 1 0 1.92

Check Point Software Technologies currently has a consensus target price of $111.24, indicating a potential downside of 1.54%. ANSYS has a consensus target price of $113.65, indicating a potential downside of 7.93%. Given Check Point Software Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Check Point Software Technologies is more favorable than ANSYS.

Volatility and Risk

Check Point Software Technologies has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, ANSYS has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Check Point Software Technologies 42.17% 22.02% 14.91%
ANSYS 26.37% 13.87% 11.06%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Check Point Software Technologies $1.81 billion 10.19 $893.47 million $4.50 25.11
ANSYS $1.03 billion 10.16 $461.25 million $3.11 39.69

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

Institutional & Insider Ownership

67.8% of Check Point Software Technologies shares are owned by institutional investors. Comparatively, 96.8% of ANSYS shares are owned by institutional investors. 29.0% of Check Point Software Technologies shares are owned by insiders. Comparatively, 1.3% of ANSYS shares are owned by 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 ANSYS on 11 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.

ANSYS Company Profile

ANSYS, Inc. (ANSYS) develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations. Its product portfolio consists of Simulation Platform: ANSYS Workbench, Structures, Fluids, Electronics, Semiconductors, Multiphysics, AIM, Embedded Software, Systems, Three Dimensional (3-D) Direct Modeling and Academic.

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