Critical Comparison: NortonLifeLock (NLOK) and Its Rivals

by · The Markets Daily

Dividends

NortonLifeLock pays an annual dividend of $0.50 per share and has a dividend yield of 1.6%. NortonLifeLock pays out 35.0% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 2.0% and pay out 47.7% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares NortonLifeLock and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross RevenueNet IncomePrice/Earnings Ratio
NortonLifeLock$2.82 billionN/A21.69
NortonLifeLock Competitors$1.80 billion$385.88 million80.88

NortonLifeLock has higher revenue, but lower earnings than its competitors. NortonLifeLock is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

NortonLifeLock has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, NortonLifeLock’s competitors have a beta of 1.19, meaning that their average stock price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

94.9% of NortonLifeLock shares are owned by institutional investors. Comparatively, 42.3% of shares of all “Software” companies are owned by institutional investors. 3.3% of NortonLifeLock shares are owned by company insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares NortonLifeLock and its competitors’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
NortonLifeLockN/AN/AN/A
NortonLifeLock Competitors-630.38%30.81%-9.08%

NortonLifeLock Company Profile

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Gen Digital, Inc. engages in the provision of security, storage, and systems management solutions. The firm focuses on providing consumer cyber safety with its business solutions. The company was founded by Gary Hendrix in April 1982 and is headquartered in Tempe, AZ.