Stamps.com (NASDAQ:STMP) and Radware (NASDAQ:RDWR) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Earnings and Valuation
This table compares Stamps.com and Radware's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Stamps.com | $571.85 million | 6.83 | $59.23 million | $3.33 | 63.87 |
Radware | $252.07 million | 5.24 | $22.57 million | $0.57 | 49.37 |
Stamps.com has higher revenue and earnings than Radware. Radware is trading at a lower price-to-earnings ratio than Stamps.com, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
88.2% of Stamps.com shares are held by institutional investors. Comparatively, 70.5% of Radware shares are held by institutional investors. 9.6% of Stamps.com shares are held by company insiders. Comparatively, 21.6% of Radware shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Stamps.com and Radware's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Stamps.com | 21.40% | 21.50% | 16.08% |
Radware | 5.70% | 4.87% | 3.12% |
Volatility and Risk
Stamps.com has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Radware has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Stamps.com and Radware, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Stamps.com | 0 | 1 | 1 | 0 | 2.50 |
Radware | 0 | 3 | 2 | 0 | 2.40 |
Stamps.com presently has a consensus target price of $260.00, suggesting a potential upside of 22.24%. Radware has a consensus target price of $30.00, suggesting a potential upside of 6.61%. Given Stamps.com's stronger consensus rating and higher possible upside, analysts plainly believe Stamps.com is more favorable than Radware.
Summary
Stamps.com beats Radware on 10 of the 14 factors compared between the two stocks.