Reviewing Snowflake (NYSE:SNOW) & CyberArk Software (NASDAQ:CYBR)

CyberArk Software (NASDAQ:CYBR) and Snowflake (NYSE:SNOW) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CyberArk Software and Snowflake, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberArk Software	0	1	26	1	3.00
Snowflake	0	9	30	2	2.83

CyberArk Software currently has a consensus target price of $412.14, indicating a potential upside of 26.49%. Snowflake has a consensus target price of $201.76, indicating a potential upside of 40.76%. Given Snowflake’s higher possible upside, analysts plainly believe Snowflake is more favorable than CyberArk Software.

Risk & Volatility

CyberArk Software has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Snowflake has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

91.8% of CyberArk Software shares are owned by institutional investors. Comparatively, 65.1% of Snowflake shares are owned by institutional investors. 1.4% of CyberArk Software shares are owned by insiders. Comparatively, 7.8% of Snowflake shares are owned by 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.

Profitability

This table compares CyberArk Software and Snowflake’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CyberArk Software	-9.34%	0.45%	0.24%
Snowflake	-33.02%	-24.23%	-13.30%

Valuation & Earnings

This table compares CyberArk Software and Snowflake”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberArk Software	$1.00 billion	16.09	-$93.46 million	($1.95)	-167.10
Snowflake	$3.63 billion	13.05	-$836.10 million	($3.87)	-37.04

CyberArk Software has higher earnings, but lower revenue than Snowflake. CyberArk Software is trading at a lower price-to-earnings ratio than Snowflake, indicating that it is currently the more affordable of the two stocks.

Summary

CyberArk Software beats Snowflake on 8 of the 15 factors compared between the two stocks.

About CyberArk Software

CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sells software-based identity security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager, which offers risk-based credential security and session; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide secure access to third-party vendors; Dynamic Privileged Access, a SaaS solution that provides just-in-time access to Linux Virtual Machines; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Secure Desktop, a solution that protects access to endpoints. The company also provides workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure web sessions, workforce password management, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; Conjur Enterprise and Conjur Cloud, which offers a secrets management solution for specific requirements; Secrets Hub, a centralized visibility and management platform; Cloud Security solutions; Identity Management solutions, including lifecycle management, identity flows, identity compliance, and directory services; and Secure Browser. The company serves financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies. The company was incorporated in 1996 and is headquartered in Petah Tikva, Israel.

About Snowflake

Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.