Check Point Software Technologies Ltd. (CHKP) vs Gen Digital Inc. (GEN)

Check Point Software Technologies Ltd. and Gen Digital Inc. are both Software Infrastructure companies. Check Point Software Technologies Ltd. and Gen Digital Inc. are of similar size ($14.0B and $13.9B). Gen Digital Inc. trades at the lower P/E: 12.4× against 13.3×. Gen Digital Inc. grew revenue faster over the last twelve months: 20.2% against 4.64%. Check Point Software Technologies Ltd. has the higher net margin (37.9% vs 20.7%) and the higher return on invested capital (20.6% vs 12.9%). Across the 22 metrics below, Gen Digital Inc. leads on 14 and Check Point Software Technologies Ltd. on 8.

Valuation

Metric CHKP GEN Software Infrastructure median
P/E 13.26 12.43 28.02
P/S 4.89 2.55 3.07
P/B 4.93 4.88 3.36
Price to free cash flow 12.24 8.30 17.12
EV/EBITDA 15.08 7.87 14.91
EV/Sales 4.78 4.04 3.03
Earnings yield 7.54% 8.05% 0.13%
Free cash flow yield 8.17% 12.05% 1.15%

Profitability

Metric CHKP GEN Software Infrastructure median
Gross margin 87.49% 78.01% 61.23%
Operating margin 29.02% 41.68% 0.00%
Net margin 37.93% 20.73% 0.00%
Free cash flow margin 39.91% 30.71% 1.67%
Return on equity 37.64% 41.94% 0.59%
Return on assets 15.89% 6.58% 0.00%
Return on invested capital 20.61% 12.91% 0.00%

Growth

Metric CHKP GEN Software Infrastructure median
Revenue growth (TTM) 4.64% 20.16% 13.41%
EPS growth (last fiscal year) 28.95% 52.43% —
Revenue growth, 5-year CAGR 5.71% 14.41% 15.81%
Net income growth, 5-year CAGR 4.54% 11.92% 0.00%

Health

Metric CHKP GEN Software Infrastructure median
Debt to equity 0.72 3.07 0.06
Current ratio 1.67 0.47 1.55
Net debt to EBITDA (1.14) 2.98 0.08

Dividend

Metric CHKP GEN Software Infrastructure median
Dividend yield — 2.43% 1.53%
Payout ratio 0.00 0.35 0.00

Size

Metric CHKP GEN Software Infrastructure median
Market cap 13.92b 14.00b 835.96m

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