Adeia (NASDAQ:ADEA) vs. Check Point Software Technologies (NASDAQ:CHKP) Financial Analysis

Adeia (NASDAQ:ADEA) and Check Point Software Technologies (NASDAQ:CHKP) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Valuation & Earnings

This table compares Adeia and Check Point Software Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adeia	$470.87 million	5.09	$111.07 million	$1.08	20.13
Check Point Software Technologies	$2.73 billion	5.17	$1.06 billion	$9.77	14.14

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

Institutional and Insider Ownership

97.4% of Adeia shares are held by institutional investors. Comparatively, 98.5% of Check Point Software Technologies shares are held by institutional investors. 2.0% of Adeia shares are held by insiders. Comparatively, 29.0% of Check Point Software Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Adeia and Check Point Software Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adeia	0	2	4	0	2.67
Check Point Software Technologies	0	19	8	0	2.30

Adeia currently has a consensus price target of $37.60, indicating a potential upside of 72.95%. Check Point Software Technologies has a consensus price target of $149.48, indicating a potential upside of 8.24%. Given Adeia’s stronger consensus rating and higher possible upside, research analysts plainly believe Adeia is more favorable than Check Point Software Technologies.

Volatility & Risk

Adeia has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adeia	26.05%	39.26%	17.50%
Check Point Software Technologies	37.93%	38.80%	15.60%

Summary

Check Point Software Technologies beats Adeia on 8 of the 14 factors compared between the two stocks.

About Adeia

Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, California.

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.