Qualys (NASDAQ: QLYS) and Demandware (NYSE:DWRE) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
Risk and Volatility
Qualys has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Demandware has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Qualys and Demandware, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Qualys currently has a consensus target price of $45.40, indicating a potential downside of 14.58%. Given Qualys’ higher possible upside, equities research analysts clearly believe Qualys is more favorable than Demandware.
This table compares Qualys and Demandware’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
73.6% of Qualys shares are owned by institutional investors. 30.2% of Qualys shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Qualys and Demandware’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Qualys||$211.63 million||9.42||$52.41 million||$1.02||52.11|
Qualys has higher revenue and earnings than Demandware. Demandware is trading at a lower price-to-earnings ratio than Qualys, indicating that it is currently the more affordable of the two stocks.
Qualys beats Demandware on 9 of the 10 factors compared between the two stocks.
Qualys Company Profile
Qualys, Inc. is a provider of cloud-based security and compliance solutions. The Company’s solutions enable organizations to identify security risks to their information technology (IT) infrastructures, help protect their IT systems and applications from cyber-attacks. Its suite of security and compliance solutions delivered on its Qualys Cloud Platform enables its customers to identify their IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions and verify the implementation of such actions. Its Qualys Cloud Platform consists of a suite of IT security and compliance solutions. The Qualys Cloud Suite includes solutions, such as Vulnerability Management, Continuous Monitoring, Cloud Agent, AssetView, ThreatPROTECT, Policy Compliance, Payment Card Industry Compliance, Security Assessment Questionnaire, Web Application Scanning and Web Application Firewall. It provides its solutions through a software-as-a-service model.
Demandware Company Profile
Demandware, Inc. is a provider of enterprise-class cloud commerce solutions for retailers and branded manufacturers, including solutions for digital commerce and point of sale, as well as order management and intelligence capabilities. The Company’s Demandware Commerce offering is a combination of its cloud platform, community and related services that enables customers to establish and execute complex digital commerce solutions. Demandware Commerce facilitates omni-channel processes, multi-brand and multi-site rollouts, predictive merchandising and in-store operations. Its technology platform is the Demandware Commerce Cloud. The Demandware Commerce Cloud consists of over two primary solutions, such as Demandware Digital and Demandware Store. It also offers Demandware LINK, which includes technology, solution and an end-to end partners. LINK Technology Partners provide customers with access to technologies that complement the Demandware Commerce Cloud through pre-built integrations.
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