Palo Alto Networks (NYSE:PANW) and KVH Industries (NASDAQ:KVHI) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.
Earnings & Valuation
This table compares Palo Alto Networks and KVH Industries' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Palo Alto Networks | $3.41 billion | 10.46 | $-267,000,000.00 | ($1.24) | -295.69 |
| KVH Industries | $157.89 million | 1.61 | $33.26 million | ($0.71) | -19.39 |
KVH Industries has lower revenue, but higher earnings than Palo Alto Networks. Palo Alto Networks is trading at a lower price-to-earnings ratio than KVH Industries, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Palo Alto Networks has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, KVH Industries has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
Institutional and Insider Ownership
80.8% of Palo Alto Networks shares are owned by institutional investors. Comparatively, 56.6% of KVH Industries shares are owned by institutional investors. 2.3% of Palo Alto Networks shares are owned by company insiders. Comparatively, 13.1% of KVH Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Palo Alto Networks and KVH Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Palo Alto Networks | 1 | 2 | 28 | 0 | 2.87 |
| KVH Industries | 0 | 0 | 2 | 0 | 3.00 |
Palo Alto Networks currently has a consensus target price of $381.3030, suggesting a potential upside of 4.00%. KVH Industries has a consensus target price of $13.50, suggesting a potential downside of 1.96%. Given Palo Alto Networks' higher possible upside, research analysts clearly believe Palo Alto Networks is more favorable than KVH Industries.
Profitability
This table compares Palo Alto Networks and KVH Industries' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Palo Alto Networks | -8.36% | -8.66% | -1.16% |
| KVH Industries | -8.78% | -5.95% | -4.42% |
Summary
Palo Alto Networks beats KVH Industries on 8 of the 14 factors compared between the two stocks.
