Analyzing Check Point Software Technologies (NASDAQ:CHKP) & Manhattan Associates (NASDAQ:MANH)

Manhattan Associates (NASDAQ:MANH) and Check Point Software Technologies (NASDAQ:CHKP) are both large-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Earnings & Valuation

This table compares Manhattan Associates and Check Point Software Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manhattan Associates	$1.08 billion	11.86	$219.95 million	$3.49	63.05
Check Point Software Technologies	$2.73 billion	5.02	$1.06 billion	$9.77	13.72

Check Point Software Technologies has higher revenue and earnings than Manhattan Associates. Check Point Software Technologies is trading at a lower price-to-earnings ratio than Manhattan Associates, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Manhattan Associates has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Profitability

This table compares Manhattan Associates and Check Point Software Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manhattan Associates	18.67%	86.72%	28.08%
Check Point Software Technologies	37.93%	38.80%	15.60%

Institutional and Insider Ownership

98.5% of Manhattan Associates shares are owned by institutional investors. Comparatively, 98.5% of Check Point Software Technologies shares are owned by institutional investors. 0.8% of Manhattan Associates shares are owned by insiders. Comparatively, 29.0% of Check Point Software Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Manhattan Associates and Check Point Software Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Associates	0	2	9	0	2.82
Check Point Software Technologies	0	19	8	0	2.30

Manhattan Associates currently has a consensus price target of $223.70, indicating a potential upside of 1.66%. Check Point Software Technologies has a consensus price target of $148.74, indicating a potential upside of 10.93%. Given Check Point Software Technologies’ higher possible upside, analysts plainly believe Check Point Software Technologies is more favorable than Manhattan Associates.

About Manhattan Associates

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations. It offers Warehouse Management Solution for managing goods and information across the distribution centers; Manhattan Active Warehouse Management, a cloud native and version less application for the associate; and Transportation Management Solution for helping shippers navigate their way through the demands and meet customer service expectations at the lowest possible freight costs; Manhattan SCALE, a portfolio of logistics execution solution; and Manhattan Active Omni, which offers order management, store inventory and fulfillment, POS, and customer engagement tools for enterprises and stores. The company also provides inventory optimization and allocation solutions; technology platform including Manhattan Active Platform solutions, a cloud-native product designed to provide version-less product access; maintenance services, which offers on-premises software licensees with software upgrades for additional or improved functionality and technological advances; and professional services, such as solutions planning and implementation, and related consulting services. In addition, it provides training and change management services; and resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. The company offers products through direct sales personnel and partnership agreements with various organizations. It serves retail, consumer goods, food and grocery, logistics service providers, industrial and wholesale, high technology and electronics, life sciences, and government industries. The company operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.

About Check Point Software Technologies

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against fifth generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile. In addition, the company offers security gateways and software platforms that support small and medium sized business. Further, it provides cloud network security, cloud native application protection, security and posture management, cloud identity and entitlement, cloud workload protection, cloud detection and response, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Additionally, the company offers technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products. It sells its products through distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel.