Check Point Software Technologies (NASDAQ:CHKP – Get Free Report) and GSE Systems (NASDAQ:GVP – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Institutional and Insider Ownership
87.6% of Check Point Software Technologies shares are held by institutional investors. Comparatively, 21.8% of GSE Systems shares are held by institutional investors. 29.0% of Check Point Software Technologies shares are held by company insiders. Comparatively, 8.2% of GSE Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Check Point Software Technologies has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, GSE Systems has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Check Point Software Technologies | $2.41 billion | 7.94 | $840.30 million | $7.12 | 22.30 |
| GSE Systems | $45.04 million | 0.19 | -$8.72 million | ($3.54) | -0.75 |
Check Point Software Technologies has higher revenue and earnings than GSE Systems. GSE Systems 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 Check Point Software Technologies and GSE Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Check Point Software Technologies | 34.80% | 30.81% | 15.73% |
| GSE Systems | -19.37% | -129.71% | -37.00% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Check Point Software Technologies and GSE Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Check Point Software Technologies | 0 | 13 | 9 | 0 | 2.41 |
| GSE Systems | 0 | 0 | 1 | 0 | 3.00 |
Check Point Software Technologies currently has a consensus price target of $160.16, indicating a potential upside of 0.86%. GSE Systems has a consensus price target of $13.00, indicating a potential upside of 386.89%. Given GSE Systems’ stronger consensus rating and higher probable upside, analysts clearly believe GSE Systems is more favorable than Check Point Software Technologies.
Summary
Check Point Software Technologies beats GSE Systems on 11 of the 14 factors compared between the two stocks.
About Check Point Software Technologies
Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against fifth generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile. In addition, the company offers security gateways and software platforms that support small and medium sized business. Further, it provides cloud network security, cloud native application protection, security and posture management, cloud identity and entitlement, cloud workload protection, cloud detection and response, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Additionally, the company offers 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 on Check Point products. It sells its products through distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel.
About GSE Systems
GSE Systems, Inc. engages in the provision of professional and technical engineering services, staffing services, and simulation software to clients in the power and process industries in the United States, Asia, Europe, and internationally. It operates in two segments: Engineering and Workforce Solutions. The Engineering segment provides various technical engineering services for ASME programs; and simulation software and services, including operator training systems for the nuclear, fossil fuel power generation, and process industries. The segment also offers in-service testing for engineering programs focused on ASME OM code; in-service inspection for specialty engineering including ASME Section XI; software solutions; mechanical and civil/structural design; electrical, instrumentation, and controls design; digital controls/cyber security; and fire protection solutions for nuclear power plant design modifications. The Workforce Solutions segment supports project lifecycles and provides technical talent and specialty services comprising professional and training services, procedure writing services, and flexible staffing and talent acquisition services for energy, engineering, construction, government, infrastructure, environmental, and manufacturing industries, which include reactor operations instructors, procedure writers, project managers, engineers, work management specialists, planners, and training material developers. The company markets its products and services through a network of direct sales staff, agents and representatives, and strategic alliance partners. GSE Systems, Inc. was founded in 1971 and is headquartered in Columbia, Maryland.
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