Financial Contrast: Radware (NASDAQ:RDWR) and Broadridge Financial Solutions (NYSE:BR)

Radware (NASDAQ:RDWR) and Broadridge Financial Solutions (NYSE:BR) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk & Volatility

Radware has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Broadridge Financial Solutions has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Valuation and Earnings

This table compares Radware and Broadridge Financial Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Radware $250.03 million 6.70 $9.64 million $0.30 120.40
Broadridge Financial Solutions $4.99 billion 3.95 $547.50 million $5.66 29.98

Broadridge Financial Solutions has higher revenue and earnings than Radware. Broadridge Financial Solutions is trading at a lower price-to-earnings ratio than Radware, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Radware and Broadridge Financial Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radware 0 1 3 0 2.75
Broadridge Financial Solutions 0 2 3 0 2.60

Radware currently has a consensus target price of $37.75, suggesting a potential upside of 4.51%. Broadridge Financial Solutions has a consensus target price of $178.60, suggesting a potential upside of 5.26%. Given Broadridge Financial Solutions’ higher possible upside, analysts plainly believe Broadridge Financial Solutions is more favorable than Radware.

Profitability

This table compares Radware and Broadridge Financial Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Radware 5.53% 5.27% 3.25%
Broadridge Financial Solutions 10.96% 42.69% 11.64%

Insider and Institutional Ownership

80.2% of Radware shares are owned by institutional investors. Comparatively, 86.6% of Broadridge Financial Solutions shares are owned by institutional investors. 21.6% of Radware shares are owned by insiders. Comparatively, 2.0% of Broadridge Financial Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Broadridge Financial Solutions beats Radware on 8 of the 13 factors compared between the two stocks.

Radware Company Profile

Radware Ltd. engages in the provision of application delivery and cyber security solutions for virtual, cloud, and software defined data centers. Its products include application and network security, and application delivery. The application and network security offers real-time network and application attack mitigation solution that protects the application infrastructure against network and application downtime, application vulnerability exploitation, malware spread, information theft, web service attacks, and web defacement. The application delivery is designed to simplify operations while ensuring business applications resilience and application service level agreement. The company was founded by Yehuda Zisapel and Roy Zisapel on May 16, 1996 and is headquartered in Tel Aviv, Israel.

Broadridge Financial Solutions Company Profile

Broadridge Financial Solutions, Inc. engages in the provision of investor communications and technology solutions to banks, broker-dealers, mutual funds, and corporate issuers. It operates through the following segments: Investor Communication Solutions and Global Technology and Operations. The Investor Communication Solutions segment offers services for broker-dealer investor communication, customer communication, corporate issuer, advisor solutions, and mutual fund and retirement solutions. The Global Technology and Operations segment includes middle and back-office securities processing solutions, automation services, and business process outsourcing services. The company was founded in 1962 and is headquartered in Lake Success, NY.

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