Cyberark Software (NASDAQ: CYBR) and YuMe (NYSE:YUME) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Ratings

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This is a breakdown of current ratings and recommmendations for Cyberark Software and YuMe, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cyberark Software 0 8 8 0 2.50
YuMe 0 0 0 0 N/A

Cyberark Software currently has a consensus target price of $48.93, indicating a potential upside of 12.36%. Given Cyberark Software’s higher possible upside, research analysts clearly believe Cyberark Software is more favorable than YuMe.

Valuation & Earnings

This table compares Cyberark Software and YuMe’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cyberark Software $216.61 million 6.98 $28.12 million $0.63 69.13
YuMe $160.41 million 0.82 -$7.72 million $0.10 37.60

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

Profitability

This table compares Cyberark Software and YuMe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cyberark Software 9.24% 7.19% 5.33%
YuMe 5.25% 10.01% 6.37%

Insider and Institutional Ownership

76.7% of Cyberark Software shares are held by institutional investors. Comparatively, 48.2% of YuMe shares are held by institutional investors. 29.3% of YuMe shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

YuMe pays an annual dividend of $0.12 per share and has a dividend yield of 3.2%. Cyberark Software does not pay a dividend. YuMe pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Cyberark Software has a beta of 2.58, meaning that its stock price is 158% more volatile than the S&P 500. Comparatively, YuMe has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Summary

Cyberark Software beats YuMe on 11 of the 15 factors compared between the two stocks.

Cyberark Software Company Profile

CyberArk Software Ltd is an Israel-based provider of information technology (IT) security solutions that protects organizations from cyber-attacks. The Company’s software solutions are focused on protecting privileged accounts, which have become a critical target in the lifecycle of cyber-attacks. The Company’s Privileged Account Security Solution consists of various products, such as Shares Technology Platform, Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, CyberArk-Conjur, Endpoint Privilege Manager and On-Demand Privileges Manager. The Company’s products provide protection against external and internal cyber threats and enables detection and neutralization of attacks. The Company’s Enterprise Password Vault provides customers with a tool to manage and protect all privileged accounts across an entire organization, including physical, virtual or cloud-based assets.

YuMe Company Profile

YuMe, Inc. (YuMe) is an independent provider of multi-screen video advertising technology, connecting brand advertisers, digital media property owners and consumers of video content across a range of Internet-connected devices. The Company operating segments include Domestic and International. The Company offers advertising customers end-to-end marketing solutions by combining data-driven technologies with deep insight into audience behavior. The Company also offers demand-side platform (DSP), called YuMe for Advertisers, to find relevant audiences and deliver targeted advertising, and a supply-side platform (SSP), called YuMe for Publishers (YFP 5.0), which helps aggregate audiences, define audience characteristics and offer monetization opportunities for digital media property owners. Its technologies serve the specific needs of brand advertisers and enable them to find and target brand-receptive audiences across a range of Internet connected devices and digital media properties.

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