Head to Head Comparison: Ceridian HCM (NYSE:CDAY) vs. Check Point Software Technologies (NYSE:CHKP)

Ceridian HCM (NYSE:CDAY) and Check Point Software Technologies (NASDAQ:CHKP) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Volatility & Risk

Ceridian HCM has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.



Valuation & Earnings

This table compares Ceridian HCM and Check Point Software Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ceridian HCM $746.40 million 9.55 -$63.40 million ($0.05) -1,012.20
Check Point Software Technologies $1.92 billion 9.05 $821.30 million $5.21 21.86

Check Point Software Technologies has higher revenue and earnings than Ceridian HCM. Ceridian HCM is trading at a lower price-to-earnings ratio than Check Point Software Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ceridian HCM and Check Point Software Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ceridian HCM -5.13% 0.89% 0.23%
Check Point Software Technologies 42.05% 22.41% 14.62%

Insider and Institutional Ownership

79.6% of Ceridian HCM shares are held by institutional investors. Comparatively, 71.3% of Check Point Software Technologies shares are held by institutional investors. 26.9% of Ceridian HCM shares are held by insiders. Comparatively, 29.0% of Check Point Software Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Ceridian HCM and Check Point Software Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ceridian HCM 0 7 5 0 2.42
Check Point Software Technologies 0 15 6 0 2.29

Ceridian HCM currently has a consensus price target of $45.70, indicating a potential downside of 9.70%. Check Point Software Technologies has a consensus price target of $121.39, indicating a potential upside of 6.58%. Given Check Point Software Technologies’ higher probable upside, analysts plainly believe Check Point Software Technologies is more favorable than Ceridian HCM.

Summary

Check Point Software Technologies beats Ceridian HCM on 10 of the 14 factors compared between the two stocks.

Ceridian HCM Company Profile

Ceridian HCM Holding Inc. operates as a human capital management (HCM) software company in the United States and internationally. The company offers Dayforce, a cloud HCM platform that provides human resources (HR), payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud platform, which offers scalable and straightforward payroll and HR solutions. It also provides Bureau solutions for payroll and payroll-related services. Ceridian HCM Holding Inc. was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

Check Point Software Technologies Company Profile

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a portfolio of network and gateway solutions, management solutions, and data and endpoint security solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against 5th generation mega cyber-attacks across various networks, endpoint, cloud, and mobile; security gateways from platforms for small business and small office locations, high end and high demanding data centers, and perimeter environments; and Check Point SandBlast family for threat prevention and zero-day protections. The company also offers Check Point CloudGuard cloud security product that delivers threat prevention security for enterprise cloud networks, data, and applications; Check Point SandBlast Mobile for mobile security in iOS and Android devices; and Check Point Security Management, which offers security management through a single console that streamlines security operations and provides visibility into policy administration and threat analysis. In addition, the company provides technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services. It sells its products and services to enterprises, service providers, small and medium sized businesses, and consumers through a network of channel partners, such as distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was founded in 1993 and is headquartered in Tel Aviv, Israel.

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