Sourcefire (FIRE) vs. FireEye (FEYE) Financial Analysis
Sourcefire (NASDAQ: FIRE) and FireEye (NASDAQ:FEYE) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
68.2% of FireEye shares are held by institutional investors. 2.4% of FireEye shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Sourcefire and FireEye, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sourcefire currently has a consensus price target of $2.50, suggesting a potential upside of 7.30%. FireEye has a consensus price target of $18.09, suggesting a potential upside of 17.17%. Given FireEye’s higher possible upside, analysts plainly believe FireEye is more favorable than Sourcefire.
This table compares Sourcefire and FireEye’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Sourcefire and FireEye’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FireEye||$751.09 million||3.79||-$480.12 million||($1.71)||-9.03|
Sourcefire has higher earnings, but lower revenue than FireEye.
FireEye beats Sourcefire on 5 of the 8 factors compared between the two stocks.
Sourcefire Company Profile
Sourcefire, Inc. (Sourcefire) is engaged in the business of delivering intelligent cybersecurity technologies. The Company provides a portfolio of solutions that enables commercial enterprises and government agencies worldwide to manage and minimize cybersecurity risks. Sourcefire provides customers with Agile Security that consists of hardware with embedded software, software and cloud-based solutions. It sells its solutions to a customer base that includes Global 2000 companies, global enterprises, the United States and international government agencies, and small and mid-size businesses. During the year ended December 31, 2012, it generated approximately 67% of the Company’s revenue from customers in the United States, and 33% of the Company’s revenue from customers outside of the United States. As of December 31, 2012, its product revenue and services revenue represented 61% and 39% of its total revenue, respectively.
FireEye Company Profile
FireEye, Inc. provides intelligence-based cybersecurity solutions that allow organizations to prepare for, prevent, respond to and remediate cyber-attacks. The Company offers various products, such as Threat Detection and Prevention Solutions, which include network security products (NX and Multi-vector Virtual Execution (MVX) Compute Node Series), e-mail security products (EX Series and e-mail threat prevention cloud (ETP), endpoint security products (HX Series) and content security products (FX Series); security management and orchestration products, which include Central Management System and FireEye Security Orchestrator, and forensics and investigation products, which include Threat Analytics Platform (TAP), Malware Analysis (AX Series) and Enterprise Forensics (PX Series and IA Series). Its Subscription and Services offers Threat Intelligence Subscriptions, Security-as-a-Service Offerings, and Customer Support and Maintenance Services.
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