Radware (NASDAQ:RDWR – Get Free Report) and Paymentus (NYSE:PAY – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Profitability
This table compares Radware and Paymentus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Radware | -4.73% | -0.72% | -0.40% |
| Paymentus | 4.63% | 9.33% | 7.96% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Radware and Paymentus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Radware | 0 | 1 | 1 | 0 | 2.50 |
| Paymentus | 0 | 6 | 2 | 2 | 2.60 |
Valuation and Earnings
This table compares Radware and Paymentus”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Radware | $261.29 million | 3.50 | -$21.59 million | ($0.46) | -47.37 |
| Paymentus | $614.49 million | 4.05 | $22.32 million | $0.23 | 87.00 |
Paymentus has higher revenue and earnings than Radware. Radware is trading at a lower price-to-earnings ratio than Paymentus, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Radware has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Paymentus has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
Insider & Institutional Ownership
73.1% of Radware shares are held by institutional investors. Comparatively, 12.6% of Paymentus shares are held by institutional investors. 21.6% of Radware shares are held by insiders. Comparatively, 87.8% of Paymentus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Paymentus beats Radware on 13 of the 15 factors compared between the two stocks.
About Radware
Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware’s Core Business and The Hawks’ Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.
About Paymentus
Paymentus Holdings, Inc. provides cloud-based bill payment technology and solutions in the United States and internationally. The company offers electronic bill presentment and payment services, enterprise customer communication, and self-service revenue management to billers through a software-as-a-service technology platform. Its platform's payment processing includes credit cards, debit cards, eChecks, and digital wallets. It serves utility, financial service, government, insurance, telecommunication, real estate management, education, consumer finance, healthcare, and small business industries. The company was founded in 2004 and is headquartered in Charlotte, North Carolina.
Receive News & Ratings for Radware Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Radware and related companies with MarketBeat.com's FREE daily email newsletter.
