Check Point Software Technologies (NASDAQ:CHKP) and Veeva Systems (NYSE:VEEV) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Risk and Volatility
Check Point Software Technologies has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Institutional and Insider Ownership
67.9% of Check Point Software Technologies shares are owned by institutional investors. Comparatively, 77.5% of Veeva Systems shares are owned by institutional investors. 29.0% of Check Point Software Technologies shares are owned by insiders. Comparatively, 14.4% of Veeva Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Check Point Software Technologies and Veeva Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Check Point Software Technologies | 41.47% | 25.10% | 15.40% |
Veeva Systems | 24.88% | 15.73% | 12.12% |
Earnings and Valuation
This table compares Check Point Software Technologies and Veeva Systems' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Check Point Software Technologies | $1.99 billion | 8.10 | $825.70 million | $5.51 | 20.16 |
Veeva Systems | $1.10 billion | 37.28 | $301.12 million | $1.62 | 167.73 |
Check Point Software Technologies has higher revenue and earnings than Veeva Systems. Check Point Software Technologies is trading at a lower price-to-earnings ratio than Veeva Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Check Point Software Technologies and Veeva Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Check Point Software Technologies | 3 | 13 | 5 | 0 | 2.10 |
Veeva Systems | 2 | 4 | 16 | 0 | 2.64 |
Check Point Software Technologies presently has a consensus target price of $124.55, indicating a potential upside of 11.60%. Veeva Systems has a consensus target price of $293.1304, indicating a potential upside of 7.48%. Given Check Point Software Technologies' higher probable upside, research analysts clearly believe Check Point Software Technologies is more favorable than Veeva Systems.
Summary
Check Point Software Technologies beats Veeva Systems on 8 of the 14 factors compared between the two stocks.