Contrasting SeaChange International (NASDAQ:SEAC) and Palo Alto Networks (NASDAQ:PANW)

Palo Alto Networks (NASDAQ:PANW) and SeaChange International (NASDAQ:SEAC) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

This table compares Palo Alto Networks and SeaChange International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palo Alto Networks	2.67%	8.50%	4.35%
SeaChange International	N/A	N/A	N/A

Volatility & Risk

Palo Alto Networks has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, SeaChange International has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Insider & Institutional Ownership

79.8% of Palo Alto Networks shares are owned by institutional investors. 1.4% of Palo Alto Networks shares are owned by company insiders. Comparatively, 3.9% of SeaChange International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Palo Alto Networks and SeaChange International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palo Alto Networks	0	9	40	0	2.82
SeaChange International	0	0	0	0	0.00

Palo Alto Networks presently has a consensus price target of $385.67, suggesting a potential upside of 16.19%. Given Palo Alto Networks’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Palo Alto Networks is more favorable than SeaChange International.

Earnings and Valuation

This table compares Palo Alto Networks and SeaChange International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palo Alto Networks	$11.48 billion	23.57	$1.13 billion	$0.51	650.86
SeaChange International	$32.76 million	0.27	-$11.40 million	N/A	N/A

Palo Alto Networks has higher revenue and earnings than SeaChange International.

Summary

Palo Alto Networks beats SeaChange International on 11 of the 13 factors compared between the two stocks.

About Palo Alto Networks

Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security operations, and threat intelligence and security consulting; professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It 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. Palo Alto Networks, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.

About SeaChange International

SeaChange International, Inc. provides video delivery, advertising, streaming platforms, and emerging Free Ad-Supported Streaming TV (FAST) products and services that facilitate the aggregation, licensing, management and distribution of video and advertising content worldwide. It offers Operator TV Platform solutions including customer's current network with OTT video management solutions in a single deployment, digital video broadcasting – cable / quadrature amplitude modulation networks with OTT streaming, and immersive multiscreen experience and on demand services, as well as pre-integrated solutions, such as multi-content delivery networks including Broadpeak, Edgeware and HBO, multidigital rights management, and seamless integration with existing network components. The company also provides StreamVid, a cloud-based OTT video platform for operators and content owners that enables streaming services, including content ingestion, workflow automation, user management, content protection, billing and entitlement, and user applications for various device platforms, such as mobile devices or Smart TVs; Advanced advertising, a unified ad tech solution to insert adverts into various video feeds, including broadcast, internet protocol television, and OTT; and Xstream platform, a cloud-based content monetization platform that provides the range of capabilities, including generation and distribution of FAST channels, streaming enablement via content aggregation, and targeted insertion of advertisement from various demand sources. In addition, it provides professional, and maintenance and technical support services, as well as managed services. The company sells and markets its products and services through a direct sales process, as well as to systems integrators and value-added resellers. It serves cable system operators, telecommunications companies, and satellite operators, as well as broadcasters and other content providers. The company was incorporated in 1993 and is headquartered in Boston, Massachusetts.