GSE Systems (NASDAQ:GVP – Get Free Report) and Check Point Software Technologies (NASDAQ:CHKP – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional & Insider Ownership
21.8% of GSE Systems shares are owned by institutional investors. Comparatively, 87.6% of Check Point Software Technologies shares are owned by institutional investors. 8.2% of GSE Systems 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, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations for GSE Systems and Check Point Software Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GSE Systems | 0 | 0 | 1 | 0 | 3.00 |
| Check Point Software Technologies | 0 | 13 | 9 | 0 | 2.41 |
Volatility & Risk
GSE Systems has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.
Profitability
This table compares GSE Systems and Check Point Software Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GSE Systems | -19.37% | -129.71% | -37.00% |
| Check Point Software Technologies | 34.80% | 30.81% | 15.73% |
Earnings and Valuation
This table compares GSE Systems and Check Point Software Technologies’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GSE Systems | $45.04 million | 0.19 | -$8.72 million | ($3.54) | -0.74 |
| Check Point Software Technologies | $2.41 billion | 7.90 | $840.30 million | $7.12 | 22.18 |
Check Point Software Technologies has higher revenue and earnings than GSE Systems. GSE Systems 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.
Summary
Check Point Software Technologies beats GSE Systems on 11 of the 14 factors compared between the two stocks.
About GSE Systems
GSE Systems, Inc. engages in the provision of professional and technical engineering services, staffing services, and simulation software to clients in the power and process industries in the United States, Asia, Europe, and internationally. It operates in two segments: Engineering and Workforce Solutions. The Engineering segment provides various technical engineering services for ASME programs; and simulation software and services, including operator training systems for the nuclear, fossil fuel power generation, and process industries. The segment also offers in-service testing for engineering programs focused on ASME OM code; in-service inspection for specialty engineering including ASME Section XI; software solutions; mechanical and civil/structural design; electrical, instrumentation, and controls design; digital controls/cyber security; and fire protection solutions for nuclear power plant design modifications. The Workforce Solutions segment supports project lifecycles and provides technical talent and specialty services comprising professional and training services, procedure writing services, and flexible staffing and talent acquisition services for energy, engineering, construction, government, infrastructure, environmental, and manufacturing industries, which include reactor operations instructors, procedure writers, project managers, engineers, work management specialists, planners, and training material developers. The company markets its products and services through a network of direct sales staff, agents and representatives, and strategic alliance partners. GSE Systems, Inc. was founded in 1971 and is headquartered in Columbia, Maryland.
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. The company also offers security gateways and software platforms that support small and medium sized business (SMB) to large enterprise data center and telco-grade environments; and threat prevention technologies and zero-day protections. In addition, the company provides cloud network security, security and posture management, cloud workload protection, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Further, the company provides 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. The company has a strategic partnership with Revelstoke to automate detection and response solutions. The company was incorporated in 1993 and is headquartered in Tel Aviv, Israel.
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