Palo Alto Networks (NASDAQ:PANW – Get Free Report) and SeaChange International (NASDAQ:SEAC – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Profitability
This table compares Palo Alto Networks and SeaChange International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Palo Alto Networks | 7.95% | 10.53% | 4.76% |
| SeaChange International | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Palo Alto Networks and SeaChange International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Palo Alto Networks | 1 | 6 | 40 | 1 | 2.85 |
| SeaChange International | 0 | 0 | 0 | 0 | 0.00 |
Risk and Volatility
Palo Alto Networks has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, SeaChange International has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
Valuation and Earnings
This table compares Palo Alto Networks and SeaChange International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Palo Alto Networks | $9.22 billion | 33.77 | $1.13 billion | $1.22 | 313.22 |
| SeaChange International | $32.76 million | 0.27 | -$11.40 million | N/A | N/A |
Palo Alto Networks has higher revenue and earnings than SeaChange International.
Insider & Institutional Ownership
79.8% of Palo Alto Networks shares are held by institutional investors. 1.4% of Palo Alto Networks shares are held by insiders. Comparatively, 3.9% of SeaChange International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Palo Alto Networks beats SeaChange International on 12 of the 14 factors compared between the two stocks.
About Palo Alto Networks
Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security operations, and threat intelligence and security consulting; professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It 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. Palo Alto Networks, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.
About SeaChange International
SeaChange International, Inc. provides video delivery, advertising, streaming platforms, and emerging Free Ad-Supported Streaming TV (FAST) products and services that facilitate the aggregation, licensing, management and distribution of video and advertising content worldwide. It offers Operator TV Platform solutions including customer's current network with OTT video management solutions in a single deployment, digital video broadcasting – cable / quadrature amplitude modulation networks with OTT streaming, and immersive multiscreen experience and on demand services, as well as pre-integrated solutions, such as multi-content delivery networks including Broadpeak, Edgeware and HBO, multidigital rights management, and seamless integration with existing network components. The company also provides StreamVid, a cloud-based OTT video platform for operators and content owners that enables streaming services, including content ingestion, workflow automation, user management, content protection, billing and entitlement, and user applications for various device platforms, such as mobile devices or Smart TVs; Advanced advertising, a unified ad tech solution to insert adverts into various video feeds, including broadcast, internet protocol television, and OTT; and Xstream platform, a cloud-based content monetization platform that provides the range of capabilities, including generation and distribution of FAST channels, streaming enablement via content aggregation, and targeted insertion of advertisement from various demand sources. In addition, it provides professional, and maintenance and technical support services, as well as managed services. The company sells and markets its products and services through a direct sales process, as well as to systems integrators and value-added resellers. It serves cable system operators, telecommunications companies, and satellite operators, as well as broadcasters and other content providers. The company was incorporated in 1993 and is headquartered in Boston, Massachusetts.
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