Head-To-Head Analysis: PAR Technology (NYSE:PAR) & Check Point Software Technologies (NASDAQ:CHKP)

by · The Markets Daily

Check Point Software Technologies (NASDAQ:CHKPGet Free Report) and PAR Technology (NYSE:PARGet Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Insider and Institutional Ownership

98.5% of Check Point Software Technologies shares are held by institutional investors. 29.0% of Check Point Software Technologies shares are held by company insiders. Comparatively, 2.3% of PAR Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Check Point Software Technologies and PAR Technology’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Check Point Software Technologies37.93%38.80%15.60%
PAR Technology-14.52%-1.62%-0.97%

Earnings and Valuation

This table compares Check Point Software Technologies and PAR Technology”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Check Point Software Technologies$2.73 billion5.19$1.06 billion$9.7714.19
PAR Technology$455.55 million1.64-$84.46 million($1.76)-10.25

Check Point Software Technologies has higher revenue and earnings than PAR Technology. PAR Technology 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Check Point Software Technologies and PAR Technology, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Check Point Software Technologies019802.30
PAR Technology12502.50

Check Point Software Technologies presently has a consensus target price of $148.74, indicating a potential upside of 7.27%. PAR Technology has a consensus target price of $24.61, indicating a potential upside of 36.46%. Given PAR Technology’s stronger consensus rating and higher probable upside, analysts clearly believe PAR Technology is more favorable than Check Point Software Technologies.

Risk & Volatility

Check Point Software Technologies has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, PAR Technology has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Summary

Check Point Software Technologies beats PAR Technology on 11 of the 14 factors compared between the two stocks.

About Check Point Software Technologies

(Get Free Report)

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 PAR Technology

(Get Free Report)

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.