Critical Comparison: UiPath (NYSE:PATH) vs. Check Point Software Technologies (NASDAQ:CHKP)

UiPath (NYSE:PATH) and Check Point Software Technologies (NASDAQ:CHKP) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UiPath	-6.49%	-4.14%	-2.82%
Check Point Software Technologies	32.97%	32.40%	16.26%

Insider & Institutional Ownership

62.5% of UiPath shares are owned by institutional investors. Comparatively, 98.5% of Check Point Software Technologies shares are owned by institutional investors. 22.4% of UiPath shares are owned by insiders. Comparatively, 29.0% of Check Point Software Technologies shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for UiPath and Check Point Software Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UiPath	2	15	2	0	2.00
Check Point Software Technologies	0	17	10	1	2.43

UiPath presently has a consensus target price of $14.53, indicating a potential upside of 33.97%. Check Point Software Technologies has a consensus target price of $227.26, indicating a potential upside of 1.08%. Given UiPath’s higher probable upside, equities research analysts clearly believe UiPath is more favorable than Check Point Software Technologies.

Earnings & Valuation

This table compares UiPath and Check Point Software Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UiPath	$1.41 billion	4.22	-$89.88 million	($0.16)	-67.78
Check Point Software Technologies	$2.57 billion	9.64	$845.70 million	$7.47	30.10

Check Point Software Technologies has higher revenue and earnings than UiPath. UiPath 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.

Volatility & Risk

UiPath has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Check Point Software Technologies has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Summary

Check Point Software Technologies beats UiPath on 13 of the 15 factors compared between the two stocks.

About UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.

About Check Point Software Technologies

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.