Check Point Software Technologies (CHKP) and Shotspotter (NASDAQ:SSTI) Financial Contrast

Shotspotter (NASDAQ:SSTI) and Check Point Software Technologies (NASDAQ:CHKP) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Shotspotter -19.52% -36.43% -13.84%
Check Point Software Technologies 43.35% 23.04% 15.21%

Risk and Volatility

Shotspotter has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Shotspotter and Check Point Software Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shotspotter 0 0 7 0 3.00
Check Point Software Technologies 0 16 5 0 2.24

Shotspotter currently has a consensus target price of $47.00, indicating a potential upside of 15.68%. Check Point Software Technologies has a consensus target price of $114.29, indicating a potential upside of 1.47%. Given Shotspotter’s stronger consensus rating and higher possible upside, research analysts clearly believe Shotspotter is more favorable than Check Point Software Technologies.

Insider & Institutional Ownership

55.5% of Shotspotter shares are owned by institutional investors. Comparatively, 66.5% of Check Point Software Technologies shares are owned by institutional investors. 36.1% of Shotspotter shares are owned by company insiders. Comparatively, 29.0% of Check Point Software Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Shotspotter and Check Point Software Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shotspotter $23.76 million 18.42 -$9.98 million ($0.57) -71.28
Check Point Software Technologies $1.85 billion 9.93 $802.92 million $4.89 23.03

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

Summary

Check Point Software Technologies beats Shotspotter on 8 of the 14 factors compared between the two stocks.

About Shotspotter

ShotSpotter, Inc. provides software-as-a-service based gunshot detection solutions for law enforcement officials and security personnel in the United States, South Africa, and internationally. The company's solutions include ShotSpotter Flex, an outdoor public safety solution for cities and municipalities to identify, locate, and deter gun violence by incorporating a real-time gunshot detection system into their policing systems; and SST SecureCampus that helps the law enforcement and security personnel serving universities, colleges, and other educational institutions to mitigate risk and enhance security by notifying authorities and first responders of an active-shooter. It also provides ShotSpotter SiteSecure, which serves various customers, such as corporations to safeguard their facilities; and public agencies focused on protecting critical infrastructure, including train stations, airports, and freeways. The company serves public safety customers and higher-education campuses through direct sales teams. ShotSpotter, Inc. was founded in 1996 and is headquartered in Newark, California.

About Check Point Software Technologies

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a portfolio of network and gateway solutions, management solutions, and data and endpoint security solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against 5th generation mega cyber-attacks across various networks, endpoint, cloud, and mobile; security gateways from platforms for small business and small office locations, high end and high demanding data centers, and perimeter environments; and Check Point SandBlast family for threat prevention and zero-day protections. The company also offers Check Point CloudGuard cloud security product that delivers threat prevention security for enterprise cloud networks, data, and applications; Check Point SandBlast Mobile for mobile security in iOS and Android devices; and Check Point Security Management, which offers security management through a single console that streamlines security operations and provides visibility into policy administration and threat analysis. In addition, the company provides technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services. It sells its products and services to enterprises, service providers, small and medium sized businesses, and consumers through a network of channel partners, such as distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was founded in 1993 and is headquartered in Tel Aviv, Israel.

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