Check Point Software Technologies Ltd. (CHKP) vs Global Payments Inc. (GPN)

Check Point Software Technologies Ltd. and Global Payments Inc. are both Software Infrastructure companies. Global Payments Inc. is the larger, with a market value of $22.7B against $15.5B — 1.5× the size. Global Payments Inc. has negative trailing earnings, so its P/E is not meaningful; Check Point Software Technologies Ltd. trades at 16.0×. Global Payments Inc. grew revenue faster over the last twelve months: 43.1% against 4.64%. Check Point Software Technologies Ltd. has the higher net margin (37.9% vs −9.15%) and the higher return on invested capital (20.6% vs 2.01%). Across the 21 metrics below, Check Point Software Technologies Ltd. leads on 15 and Global Payments Inc. on 6.

Valuation

Metric CHKP GPN Software Infrastructure median
P/E 16.02 n/m 25.33
P/S 5.90 2.18 3.11
P/B 5.96 0.94 2.91
Price to free cash flow 14.79 27.10 18.80
EV/EBITDA 18.30 10.40 14.46
EV/Sales 5.79 3.85 3.01
Earnings yield 6.24% (3.60%) 0.00%
Free cash flow yield 6.76% 3.69% 0.27%

Profitability

Metric CHKP GPN Software Infrastructure median
Gross margin 87.49% 63.91% 59.21%
Operating margin 29.02% 12.84% 0.00%
Net margin 37.93% (9.15%) 0.00%
Free cash flow margin 39.91% 8.06% 0.00%
Return on equity 37.64% (3.97%) 0.00%
Return on assets 15.89% (1.67%) 0.00%
Return on invested capital 20.61% 2.01% 0.00%

Growth

Metric CHKP GPN Software Infrastructure median
Revenue growth (TTM) 4.64% 43.06% 12.44%
EPS growth (last fiscal year) 28.95% (6.01%) 20.22%
Revenue growth, 5-year CAGR 5.71% 0.75% 15.74%
Net income growth, 5-year CAGR 4.54% 19.09% 0.00%

Health

Metric CHKP GPN Software Infrastructure median
Debt to equity 0.72 0.94 0.04
Current ratio 1.67 0.82 1.53
Net debt to EBITDA (1.14) 3.98 0.06

Dividend

Metric CHKP GPN Software Infrastructure median
Dividend yield — 1.21% 1.06%
Payout ratio — — 0.29

Size

Metric CHKP GPN Software Infrastructure median
Market cap 15.52b 22.73b 644.05m

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