NortonLifeLock (NASDAQ:NLOK) and Qumu (NASDAQ:QUMU) are both industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

NortonLifeLock has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Qumu has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Institutional and Insider Ownership

84.1% of NortonLifeLock shares are held by institutional investors. Comparatively, 27.0% of Qumu shares are held by institutional investors. 0.4% of NortonLifeLock shares are held by company insiders. Comparatively, 23.7% of Qumu shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares NortonLifeLock and Qumu’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NortonLifeLock $4.73 billion 3.29 $31.00 million $1.17 21.36
Qumu $25.01 million 1.35 -$3.62 million ($0.96) -2.69

NortonLifeLock has higher revenue and earnings than Qumu. Qumu is trading at a lower price-to-earnings ratio than NortonLifeLock, indicating that it is currently the more affordable of the two stocks.

Dividends

NortonLifeLock pays an annual dividend of $0.50 per share and has a dividend yield of 2.0%. Qumu does not pay a dividend. NortonLifeLock pays out 42.7% of its earnings in the form of a dividend.

Profitability

This table compares NortonLifeLock and Qumu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NortonLifeLock 21.39% 12.82% 4.61%
Qumu -18.14% -68.24% -11.48%

Analyst Ratings

This is a summary of recent ratings and price targets for NortonLifeLock and Qumu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NortonLifeLock 0 3 1 0 2.25
Qumu 0 0 2 0 3.00

NortonLifeLock currently has a consensus target price of $26.00, indicating a potential upside of 4.04%. Given NortonLifeLock’s higher probable upside, equities research analysts plainly believe NortonLifeLock is more favorable than Qumu.

Summary

NortonLifeLock beats Qumu on 12 of the 16 factors compared between the two stocks.

NortonLifeLock Company Profile

NortonLifeLock Inc. provides cyber security products, services, and solutions worldwide. The company offers Norton security solutions as a subscription service providing protection for devices against malware, viruses, adware, and ransomware on various platforms; and LifeLock identity theft protection solution that provides identity monitoring, alerts, and restoration to its customers. It also provides Norton Secure VPN and other consumer security solutions, as well as Norton Wi-Fi Privacy VPN. The company serves enterprises, including business, government, and public-sector customers; small, medium, and large businesses; and individuals, households, and small businesses. It markets and sells its products and related services through direct sales force, direct marketing and co-marketing programs, e-commerce and telesales platforms, distributors, Internet-based resellers, system builders, Internet service providers, employee benefits providers, wireless carriers, retailers, original equipment manufacturers, and retail and online stores. The company was formerly known as Symantec Corporation and changed its name to NortonLifeLock Inc. in November 2019. NortonLifeLock Inc. was founded in 1982 and is based in Tempe, Arizona.

Qumu Company Profile

Qumu Corporation provides tools to create, manage, secure, distribute, and deliver live and on-demand video content for the enterprises. It offers an end-to-end video creation, management, and delivery solution through the sale of software licenses and hardware, software on server appliance, software-enabled devices, and a cloud-hosted software-as-a-service platform. The company also provides maintenance and support, professional, and other services. The company markets its products to customers in the banking, finance and insurance, manufacturing, services and consulting, telecom and technology, and biotech and health care markets through direct sales and channel partners in North America, Europe, and Asia. The company was formerly known as Rimage Corporation and changed its name to Qumu Corporation in September 2013. Qumu Corporation was founded in 1978 and is headquartered in Minneapolis, Minnesota.

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