Comparing Brady Corporation (NYSE:BRC) and CYREN (CYRN)

Brady Corporation (NYSE: BRC) and CYREN (NASDAQ:CYRN) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitabiliy and dividends.

Institutional and Insider Ownership

76.2% of Brady Corporation shares are owned by institutional investors. Comparatively, 25.9% of CYREN shares are owned by institutional investors. 15.6% of Brady Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Brady Corporation and CYREN, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brady Corporation 0 2 1 0 2.33
CYREN 0 0 1 0 3.00

Brady Corporation presently has a consensus price target of $37.67, indicating a potential upside of 11.94%. CYREN has a consensus price target of $4.00, indicating a potential upside of 100.00%. Given CYREN’s stronger consensus rating and higher probable upside, analysts clearly believe CYREN is more favorable than Brady Corporation.

Profitability

This table compares Brady Corporation and CYREN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brady Corporation 8.64% 14.44% 8.84%
CYREN -20.12% -18.88% -12.39%

Risk and Volatility

Brady Corporation has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, CYREN has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Earnings & Valuation

This table compares Brady Corporation and CYREN’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brady Corporation $1.11 billion 1.56 $156.45 million $1.85 18.19
CYREN $31.53 million 2.49 -$1.63 million ($0.15) -13.33

Brady Corporation has higher revenue and earnings than CYREN. CYREN is trading at a lower price-to-earnings ratio than Brady Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Brady Corporation pays an annual dividend of $0.82 per share and has a dividend yield of 2.4%. CYREN does not pay a dividend. Brady Corporation pays out 44.3% of its earnings in the form of a dividend. Brady Corporation has increased its dividend for 31 consecutive years.

Summary

Brady Corporation beats CYREN on 11 of the 15 factors compared between the two stocks.

About Brady Corporation

Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety (WPS). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations (MRO) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.

About CYREN

CYREN Ltd. (CYREN) is engaged in developing and marketing information security solutions for protecting Web, e-mail and mobile transactions. The Company is a Security-as-a-Service provider of integrated cloud-based security technology solutions that mitigate cyber threats, malware attacks, information leaks, legal liability and productivity loss through the application of cyber intelligence. It delivers security services to a range of customers and original equipment manufacturer, and service provider distribution partners, including network and security vendors offering content security gateways, unified threat management solutions and antivirus solutions, and to service providers, such as Software-as-a-Service vendors, Web hosting providers and Internet service providers. Its technologies include CYREN GlobalView Cloud and Recurrent Pattern Detection. Its offerings include CYREN WebSecurity (CWS), CYREN EmailSecurity, Cyber Intelligence Suite and Embedded Solutions.

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