Radware (RDWR) & PTC (NASDAQ:PMTC) Critical Review

PTC (NASDAQ: PMTC) and Radware (NASDAQ:RDWR) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for PTC and Radware, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC 0 0 1 0 3.00
Radware 0 1 5 0 2.83

PTC currently has a consensus target price of $64.00, indicating a potential upside of 96.44%. Radware has a consensus target price of $18.75, indicating a potential upside of 12.28%. Given PTC’s stronger consensus rating and higher possible upside, equities analysts plainly believe PTC is more favorable than Radware.

Profitability

This table compares PTC and Radware’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC -0.33% -0.45% -0.16%
Radware -6.41% -2.14% -1.49%

Earnings and Valuation

This table compares PTC and Radware’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PTC N/A N/A N/A N/A N/A
Radware $198.44 million 3.69 -$1.17 million ($0.29) -57.59

PTC has higher revenue, but lower earnings than Radware.

Insider and Institutional Ownership

61.1% of Radware shares are held by institutional investors. 21.6% of Radware shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

PTC beats Radware on 5 of the 9 factors compared between the two stocks.

About PTC

PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.

About Radware

Radware Ltd. is a provider of cyber security and application delivery solutions. The Company’s solutions incorporate Distributed Denial of Service protection, Web application firewall (WAF) and Application Delivery Controllers (ADC) technologies to enable its customers to provide cyber-attack mitigation solutions for a range of applications. The Company’s products and activities are focused on protecting against cyber-attacks and ensuring optimal application service level for enterprises’ and carriers’ data centers. Its solutions include application and network security, and application delivery. Its application and network Security products include DefensePro Attack Mitigation Device, AppWall Web Application Firewall, DefenseFlow Cyber Command and Control application, and DefensePipe Cloud Scrubbing Service. Its application delivery products include Alteon NG, LinkProof NG and FastView. Its management solutions include APSolute Vision, application performance monitoring and vDirect.

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