Head-To-Head Analysis: Radware (NASDAQ:RDWR) and China Recycling Energy (NASDAQ:CREG)

Radware (NASDAQ:RDWR) and China Recycling Energy (NASDAQ:CREG) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Insider and Institutional Ownership

74.7% of Radware shares are held by institutional investors. Comparatively, 0.8% of China Recycling Energy shares are held by institutional investors. 21.6% of Radware shares are held by company insiders. Comparatively, 16.7% of China Recycling Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Radware has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, China Recycling Energy has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500.

Profitability

This table compares Radware and China Recycling Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Radware 7.09% 5.54% 3.75%
China Recycling Energy N/A -32.88% -18.93%

Analyst Recommendations

This is a summary of recent ratings and price targets for Radware and China Recycling Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radware 0 0 3 0 3.00
China Recycling Energy 0 0 0 0 N/A

Radware currently has a consensus price target of $30.00, indicating a potential upside of 21.31%. Given Radware’s higher possible upside, analysts plainly believe Radware is more favorable than China Recycling Energy.

Earnings & Valuation

This table compares Radware and China Recycling Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Radware $234.40 million 4.70 $11.73 million $0.29 85.28
China Recycling Energy $4.89 million 1.38 -$66.00 million N/A N/A

Radware has higher revenue and earnings than China Recycling Energy.

Summary

Radware beats China Recycling Energy on 10 of the 11 factors compared between the two stocks.

About Radware

Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide. The company offers DefensePro, a real-time network attack prevention device; AppWall, a Web application firewall; and DefenseFlow, a cyber-command and control application. It also provides Alteon D Line, an application delivery controller/load balancer for Web, cloud, and mobile based applications; and LinkProof NG, a multi-homing and enterprise gateway solution for connectivity of enterprise and cloud-based applications. In addition, the company offers Security Updates Subscription, which provides security updates to protect customers against the latest threats; ERT Active Attackers Feed that provides customers with information pertaining to attack sources recently involved in DDoS attacks; Alteon Global Elastic License that captures application lifecycle for large ADC deployments; APSolute Vision, a management and monitoring tool for company's application delivery and cyber security solutions; and MSSP Portal, a DDoS detection and mitigation service portal. Further, it provides Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud, as well as technical support, professional, managed, and training and certification services to its customers. The company sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. Radware Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.

About China Recycling Energy

China Recycling Energy Corporation engages in the recycling energy business in China. It designs, finances, constructs, operates, and transfers waste energy recycling projects to mid- to large-size enterprises involved in high energy-consuming businesses. The company offers waste pressure-to-energy solutions, including the blast furnace top gas recovery turbine unit, a system that utilizes high pressure gas emitted from the blast furnace top to drive turbine units and generates electricity; and waste heat-to-energy solutions, such as heat power generation projects for applications in cement, steel, coking coal, and nonferrous metal industries, which collect the residual heat from various manufacturing processes. It also provides waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas from coal mining, petroleum exploitation, refinery processing, or other sources as a fuel source to generate electricity; and the combined cycle power plant, which employs power generating cycle to utilize the waste gas that generates electricity by burning the flammable waste gas in a gas turbine, as well as uses the waste heat from burning the gas to make steam to generate additional electricity through a steam turbine. In addition, the company offers biomass power generation systems (BMPG); and waste heat power generation (WHPG) systems; and project investment, investment management, economic information consulting, technical, and financial leasing services, as well as leases energy saving systems and equipment. As of December 31, 2017, it had five recycling WHPG systems and four BMPG systems. The company was formerly known as China Digital Wireless, Inc. and changed its name to China Recycling Energy Corporation in March 2007. China Recycling Energy Corporation was incorporated in 1980 and is headquartered in Xi'an, China.

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