Critical Review: SecureWorks (NASDAQ:SCWX) vs. Cellebrite DI (NASDAQ:CLBT)

SecureWorks (NASDAQ:SCWXGet Free Report) and Cellebrite DI (NASDAQ:CLBTGet Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares SecureWorks and Cellebrite DI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SecureWorks -25.49% -5.71% -3.93%
Cellebrite DI -82.28% 122.59% 14.49%

Analyst Recommendations

This is a summary of current ratings and recommmendations for SecureWorks and Cellebrite DI, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SecureWorks 1 1 0 0 1.50
Cellebrite DI 0 0 8 0 3.00

SecureWorks presently has a consensus price target of $7.00, indicating a potential downside of 17.45%. Cellebrite DI has a consensus price target of $20.29, indicating a potential upside of 2.04%. Given Cellebrite DI’s stronger consensus rating and higher probable upside, analysts clearly believe Cellebrite DI is more favorable than SecureWorks.

Earnings & Valuation

This table compares SecureWorks and Cellebrite DI”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SecureWorks $365.88 million 2.06 -$86.04 million ($0.99) -8.57
Cellebrite DI $325.11 million 12.59 -$81.10 million ($1.55) -12.83

Cellebrite DI has lower revenue, but higher earnings than SecureWorks. Cellebrite DI is trading at a lower price-to-earnings ratio than SecureWorks, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

14.4% of SecureWorks shares are owned by institutional investors. Comparatively, 45.9% of Cellebrite DI shares are owned by institutional investors. 81.5% of SecureWorks shares are owned by company insiders. Comparatively, 5.7% of Cellebrite DI shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

SecureWorks has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Cellebrite DI has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Summary

Cellebrite DI beats SecureWorks on 9 of the 14 factors compared between the two stocks.

About SecureWorks

(Get Free Report)

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. The company's solutions include software-as-a-service solutions; managed security services; and professional services, including incident response and penetration testing services. Its solutions enable organizations to prevent security breaches, detect malicious activity, respond rapidly to security breaches, and identify emerging threats. The company sells its solutions primarily through its referral agents, regional value-added resellers, trade associations, and managed security service providers. It serves customers in a range of industries, including financial services, manufacturing, technology, retail, insurance, utility, and healthcare sectors. The company was formerly known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. SecureWorks Corp. was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Marketing L.P.

About Cellebrite DI

(Get Free Report)

Cellebrite DI Ltd. develops solutions for legally sanctioned investigations in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company's DI suite of solutions allows users to collect, review, analyze, and manage digital data across the investigative lifecycle with respect to legally sanctioned investigations used in various cases, including child exploitation, homicide, anti-terror, border control, sexual crimes, human trafficking, corporate security, cryptocurrency, and intellectual property theft. It provides Inseyets, a digital forensics software that collects and reviews digital evidence from various digital sources when conducting legally sanctioned investigations. The company's digital forensics software also offers data extraction, decoding capabilities, workflows, and automation capabilities. In addition, it provides Cellebrite Pathfinder, which reduces the time spent manually reviewing digital evidence by automating data analysis and visualization; Smart Search, an open source intelligence tool that automates the collection and review of publicly available online data; and Guardian, a case and evidence management solution. Further, the company offers digital forensic software for enterprises and service providers, including Inseyets for Enterprise, Endpoint Inspector, and Mobile Now; and professional services, such as training and certification services, and other services. It serves federal and state and local agencies. The company was incorporated in 1999 and is headquartered in Petah Tikva, Israel.

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