New Relic (NYSE: NEWR) and Radware (NASDAQ:RDWR) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
This is a breakdown of recent ratings and recommmendations for New Relic and Radware, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional and Insider Ownership
75.8% of New Relic shares are owned by institutional investors. Comparatively, 64.1% of Radware shares are owned by institutional investors. 23.1% of New Relic shares are owned by company insiders. Comparatively, 21.6% of Radware shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares New Relic and Radware’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
New Relic has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Radware has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.
Valuation & Earnings
This table compares New Relic and Radware’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Relic||$263.48 million||15.33||-$61.07 million||($0.99)||-73.58|
|Radware||$211.37 million||4.45||-$7.49 million||($0.16)||-135.06|
Radware has lower revenue, but higher earnings than New Relic. Radware is trading at a lower price-to-earnings ratio than New Relic, indicating that it is currently the more affordable of the two stocks.
Radware beats New Relic on 8 of the 14 factors compared between the two stocks.
New Relic Company Profile
New Relic, Inc. (New Relic) is a provider of enterprise software. The Company’s cloud-based platform and range of products enable organizations to collect, store and analyze software data in real time. The Company’s New Relic Software Analytics Cloud consists of an integrated suite of products, a data database and an open platform. New Relic offers an integrated suite of products, namely, New Relic APM, for application performance management; New Relic Mobile, for mobile application performance management; New Relic Servers, for server monitoring for cloud and data centers; New Relic Browser, for end user experience monitoring and performance monitoring; New Relic Synthetics, for software testing through simulated usage; New Relic Plugins, plugins to extend its functionality into other applications; New Relic Alerts, for policy management and delivering alerts across entire suite of products, and New Relic Insights, for real-time big data analytics for business managers.
Radware Company Profile
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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