Creative Technology (OTCMKTS:CREAF) and Palo Alto Networks (NYSE:PANW) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
This table compares Creative Technology and Palo Alto Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Palo Alto Networks||-7.83%||-9.61%||-1.62%|
This is a breakdown of current recommendations for Creative Technology and Palo Alto Networks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palo Alto Networks||0||6||26||0||2.81|
Palo Alto Networks has a consensus target price of $303.15, indicating a potential upside of 3.82%. Given Palo Alto Networks’ higher probable upside, analysts clearly believe Palo Alto Networks is more favorable than Creative Technology.
Insider and Institutional Ownership
78.5% of Palo Alto Networks shares are owned by institutional investors. 33.8% of Creative Technology shares are owned by insiders. Comparatively, 2.3% of Palo Alto Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Creative Technology has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Palo Alto Networks has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
Valuation & Earnings
This table compares Creative Technology and Palo Alto Networks’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Creative Technology||$66.07 million||1.82||$40.42 million||N/A||N/A|
|Palo Alto Networks||$3.41 billion||8.14||-$267.00 million||($1.24)||-235.49|
Creative Technology has higher earnings, but lower revenue than Palo Alto Networks.
Palo Alto Networks beats Creative Technology on 6 of the 11 factors compared between the two stocks.
Creative Technology Company Profile
Creative Technology Ltd, together with its subsidiaries, designs, manufactures, and distributes digital entertainment products worldwide. The company offers digitized sound and video boards, computers, and related multimedia and personal digital entertainment products. It also provides amplifiers, speakers, sound cards, gaming headsets, headphones, peripherals, accessories, software products, sound blasters, and others. In addition, the company offers multimedia solutions for personal computers and personal digital entertainment products. It markets its products and solutions to consumers and system integrators through a distribution network, including traditional marketing channels, original equipment manufacturers, and the Internet. Creative Technology Ltd was founded in 1981 and is headquartered in Singapore.
Palo Alto Networks Company Profile
Palo Alto Networks, Inc. provides cybersecurity platform solutions worldwide. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances and software deployed on an end-customer's network as a virtual or a physical appliance; and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also offers subscription services covering the areas of threat prevention, uniform resource locator filtering, malware and persistent threat, laptop and mobile device protection, and firewall, as well as cyberattacks, threat intelligence, and data loss prevention. In addition, the company provides professional services, including architecture design and planning, configuration, and firewall migration, as well as online and in-classroom education training services, as well as support services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was founded in 2005 and is headquartered in Santa Clara, California.
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