Palo Alto Networks (NYSE:PANW) and Digital China (OTCMKTS:DCHIF) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Valuation & Earnings
This table compares Palo Alto Networks and Digital China’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Palo Alto Networks||$2.27 billion||7.69||-$147.90 million||($0.55)||-337.11|
|Digital China||$1.58 billion||0.55||$50.14 million||N/A||N/A|
Insider and Institutional Ownership
80.7% of Palo Alto Networks shares are held by institutional investors. 4.8% of Palo Alto Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Palo Alto Networks has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Digital China has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.
This table compares Palo Alto Networks and Digital China’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Palo Alto Networks||-6.51%||-4.12%||-0.73%|
This is a breakdown of current recommendations and price targets for Palo Alto Networks and Digital China, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palo Alto Networks||1||5||31||1||2.84|
Palo Alto Networks currently has a consensus price target of $241.03, suggesting a potential upside of 30.00%. Given Palo Alto Networks’ higher possible upside, analysts plainly believe Palo Alto Networks is more favorable than Digital China.
Palo Alto Networks beats Digital China on 8 of the 12 factors compared between the two stocks.
Palo Alto Networks Company Profile
Palo Alto Networks, Inc. provides security platform solutions worldwide. 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.
Digital China Company Profile
Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China. It operates in three segments: DCITS, Supply Chain Services, and New Business. The company offers proprietary software, services, cloud computing, and big data analysis with the strategy of integrating [email protected] city and [email protected] agriculture. It also provides intermediary and backstage logistics services for corporate customers, e-commerce platforms, branded service providers, and individuals; and [email protected] city services for city administrators, enterprises, and citizens based on the urban information management center, integrated citizen service platform, integrated enterprise service platform, and integrated city administration platform, as well as financial services, such as financing, factoring, leasing, guarantee, etc. to third party customers. In addition, the company offers logistics, finance lease, data integration and management software sale, systems integration, application software development, maintenance and outsourcing, consultancy and training, financial specialized equipment sale, surveying service software, and network optimization services. Further, it holds trademarks; and develops and constructs science and technology parks. The company was incorporated in 2000 and is headquartered in Quarry Bay, Hong Kong.
Receive News & Ratings for Palo Alto Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Palo Alto Networks and related companies with MarketBeat.com's FREE daily email newsletter.