Analyzing SecureWorks Corp. (SCWX) & AgroFresh Solutions (AGFS)
SecureWorks Corp. (NASDAQ: SCWX) and AgroFresh Solutions (NASDAQ:AGFS) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
This table compares SecureWorks Corp. and AgroFresh Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for SecureWorks Corp. and AgroFresh Solutions, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SecureWorks Corp. currently has a consensus price target of $13.88, indicating a potential upside of 10.38%. AgroFresh Solutions has a consensus price target of $8.00, indicating a potential upside of 12.68%. Given AgroFresh Solutions’ higher possible upside, analysts clearly believe AgroFresh Solutions is more favorable than SecureWorks Corp..
Volatility and Risk
SecureWorks Corp. has a beta of 2.67, suggesting that its share price is 167% more volatile than the S&P 500. Comparatively, AgroFresh Solutions has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Earnings and Valuation
This table compares SecureWorks Corp. and AgroFresh Solutions’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SecureWorks Corp.||$455.77 million||2.24||-$25.29 million||($0.52)||-24.17|
|AgroFresh Solutions||$161.99 million||2.21||$67.33 million||($1.44)||-4.93|
AgroFresh Solutions has higher revenue, but lower earnings than SecureWorks Corp.. SecureWorks Corp. is trading at a lower price-to-earnings ratio than AgroFresh Solutions, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
7.7% of SecureWorks Corp. shares are held by institutional investors. Comparatively, 71.7% of AgroFresh Solutions shares are held by institutional investors. 88.0% of SecureWorks Corp. shares are held by company insiders. Comparatively, 19.4% of AgroFresh Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
SecureWorks Corp. beats AgroFresh Solutions on 8 of the 13 factors compared between the two stocks.
About SecureWorks Corp.
Secureworks Corp. is a holding company. The Company provides intelligence-driven information security solutions. The Company is focused on protecting the Company’s clients from cyber-attacks. The Company’s solutions enable companies to fortify their cyber defenses to prevent security breaches, detect malicious activity in real time, prioritize and respond to security incidents, and predict emerging threats. The Company offered managed security and threat intelligence on a subscription basis under contracts with initial terms that typically range from one to three years and, as of February 3, 2017. The Company’s integrated suite of solutions includes Managed security, Threat intelligence, Security and risk consulting and Incident response.
About AgroFresh Solutions
AgroFresh Solutions, Inc., formerly Boulevard Acquisition Corp., is a developer of agricultural technologies that preserve the freshness and value of fresh produce, including apples, pears, kiwifruit, avocados and bananas, as well as flowers. The Company’s principal product, The SmartFresh Quality System (SmartFresh), regulates the post-harvest ripening effects of ethylene, the naturally occurring plant hormone that triggers ripening in certain fruits and vegetables, through technology. SmartFresh is naturally biodegradable and leaves no detectable residue, which has significant consumer appeal. SmartFresh allows growers and packers to deliver just harvested freshness on a year-round basis. An integral part of the SmartFresh sales process is the AgroFresh Whole Product offering, which is a direct service model that provides customers with on-site applications of SmartFresh at their storage facilities combined with advisory services. The Company operates in approximately 40 countries.
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