Palo Alto Networks (NYSE: PANW) and Top Image Systems (NASDAQ:TISA) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
This table compares Palo Alto Networks and Top Image Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Palo Alto Networks||-8.65%||-8.51%||-1.64%|
|Top Image Systems||-22.20%||-40.66%||-19.24%|
Institutional & Insider Ownership
80.6% of Palo Alto Networks shares are owned by institutional investors. Comparatively, 3.8% of Top Image Systems shares are owned by institutional investors. 4.8% of Palo Alto Networks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Palo Alto Networks has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Top Image Systems has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Valuation & Earnings
This table compares Palo Alto Networks and Top Image Systems’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Palo Alto Networks||$1.76 billion||10.60||-$216.60 million||($1.71)||-117.61|
|Top Image Systems||$29.67 million||0.62||-$6.58 million||($0.37)||-2.71|
Top Image Systems has lower revenue, but higher earnings than Palo Alto Networks. Palo Alto Networks is trading at a lower price-to-earnings ratio than Top Image Systems, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Palo Alto Networks and Top Image Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palo Alto Networks||1||4||35||0||2.85|
|Top Image Systems||0||0||1||0||3.00|
Palo Alto Networks presently has a consensus price target of $200.78, suggesting a potential downside of 0.17%. Top Image Systems has a consensus price target of $3.00, suggesting a potential upside of 199.19%. Given Top Image Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Top Image Systems is more favorable than Palo Alto Networks.
Palo Alto Networks beats Top Image Systems on 8 of the 13 factors compared between the two stocks.
Palo Alto Networks Company Profile
Palo Alto Networks, Inc. provides security platform solutions worldwide. Its platform includes Next-Generation Firewall that delivers application, user, and content visibility and control, as well as protection against network-based cyber threats; Advanced Endpoint Protection, which prevents cyber-attacks that exploit software vulnerabilities on various fixed, mobile, and virtual endpoints and servers; and Threat Intelligence Cloud, which offers central intelligence capabilities, security for software as a service applications, and automated delivery of preventative measures against cyber-attacks. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances deployed on an end-customer's network as a virtual or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also offers subscription services covering the areas of threat prevention, uniform resource locator filtering, malware and persistent threat, laptop and mobile device protection, and firewall, as well as cyber-attack, threat intelligence, and content control. In addition, the company provides support services; and professional services, including application traffic management, solution design and planning, configuration, and firewall migration, as well as online and classroom-style education training services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was founded in 2005 and is headquartered in Santa Clara, California.
Top Image Systems Company Profile
Top Image Systems Ltd. develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees worldwide. Its solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. The company's products integrate information regardless of the source and format of the data, such as invoices, purchase orders, checks, freight and shipping bills, and others. Its solutions deliver the extracted data to applications comprising document and content management, enterprise resource planning, or customer relationship management. The company develops and markets its software solutions to a range of customers that automatically classifies, recognizes, and understands data processed into the organization systems. It processes, validates, and integrates data into ERP, CRM, and workflow systems. Its eFLOW Unified Content platform solution performs business-critical key data capture, lying within incoming documents, such as paper forms, eForms, fax, image files, microfiche, and electronic. The company serves end-user customers, value-added resellers, distributors, and system integrators. Top Image Systems Ltd. was founded in 1991 and is headquartered in Ramat Gan, Israel.
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