Logitech International (NASDAQ:LOGI) and Palo Alto Networks (NYSE:PANW) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Volatility & Risk
Logitech International has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Palo Alto Networks has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Earnings and Valuation
This table compares Logitech International and Palo Alto Networks' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Logitech International | $2.98 billion | 6.39 | $449.72 million | $1.89 | 60.29 |
| Palo Alto Networks | $3.41 billion | 9.78 | $-267,000,000.00 | ($1.24) | -276.57 |
Logitech International has higher earnings, but lower revenue than Palo Alto Networks. Palo Alto Networks is trading at a lower price-to-earnings ratio than Logitech International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Logitech International and Palo Alto Networks' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Logitech International | 18.31% | 38.26% | 22.26% |
| Palo Alto Networks | -8.36% | -8.66% | -1.16% |
Institutional and Insider Ownership
33.7% of Logitech International shares are owned by institutional investors. Comparatively, 80.8% of Palo Alto Networks shares are owned by institutional investors. 1.1% of Logitech International shares are owned by insiders. Comparatively, 2.3% of Palo Alto Networks shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings for Logitech International and Palo Alto Networks, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Logitech International | 1 | 2 | 7 | 0 | 2.60 |
| Palo Alto Networks | 1 | 2 | 28 | 0 | 2.87 |
Logitech International currently has a consensus target price of $114.75, indicating a potential upside of 0.66%. Palo Alto Networks has a consensus target price of $382.7879, indicating a potential upside of 11.91%. Given Palo Alto Networks' stronger consensus rating and higher probable upside, analysts clearly believe Palo Alto Networks is more favorable than Logitech International.
Summary
Palo Alto Networks beats Logitech International on 8 of the 14 factors compared between the two stocks.
