Critical Comparison: CyberArk Software (NASDAQ:CYBR) and Clear Secure (NYSE:YOU)

Clear Secure (NYSE:YOU) and CyberArk Software (NASDAQ:CYBR) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Insider and Institutional Ownership

73.8% of Clear Secure shares are owned by institutional investors. Comparatively, 91.8% of CyberArk Software shares are owned by institutional investors. 37.9% of Clear Secure shares are owned by company insiders. Comparatively, 1.4% of CyberArk Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Clear Secure and CyberArk Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clear Secure	10.93%	48.28%	12.96%
CyberArk Software	1.38%	2.29%	0.99%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Clear Secure and CyberArk Software, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clear Secure	1	2	3	0	2.33
CyberArk Software	0	1	25	0	2.96

Clear Secure presently has a consensus price target of $32.67, suggesting a potential upside of 23.88%. CyberArk Software has a consensus price target of $333.00, suggesting a potential upside of 6.27%. Given Clear Secure’s higher probable upside, equities research analysts clearly believe Clear Secure is more favorable than CyberArk Software.

Earnings and Valuation

This table compares Clear Secure and CyberArk Software”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clear Secure	$613.58 million	5.99	$28.11 million	$0.86	30.66
CyberArk Software	$751.89 million	18.16	-$66.50 million	$0.27	1,160.64

Clear Secure has higher earnings, but lower revenue than CyberArk Software. Clear Secure is trading at a lower price-to-earnings ratio than CyberArk Software, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Clear Secure has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, CyberArk Software has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Summary

Clear Secure beats CyberArk Software on 8 of the 14 factors compared between the two stocks.

About Clear Secure

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members. In addition, it provides RESERVE powered by CLEAR, a virtual queuing technology that provides users with the ability to book a dedicated time slot to go through security at the airport; CLEAR Verified, a B2B offering that extends secure identity platform to partners to create friction-free experiences for their customers; TSA PreCheck Enrollment Provided by CLEAR, as well as online renewal services; Atlas Certified, an automated solution to verify professional licenses and certification data across industries; and Sora ID that enables adding know your customer services to platform offerings, as well as virtual queuing technology that enables customers to manage lines. The company was founded in 2010 and is headquartered in New York, New York. Clear Secure, Inc. is a subsidiary of Alclear Investments, Llc.

About CyberArk Software

CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sells software-based identity security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager, which offers risk-based credential security and session; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide secure access to third-party vendors; Dynamic Privileged Access, a SaaS solution that provides just-in-time access to Linux Virtual Machines; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Secure Desktop, a solution that protects access to endpoints. The company also provides workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure web sessions, workforce password management, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; Conjur Enterprise and Conjur Cloud, which offers a secrets management solution for specific requirements; Secrets Hub, a centralized visibility and management platform; Cloud Security solutions; Identity Management solutions, including lifecycle management, identity flows, identity compliance, and directory services; and Secure Browser. The company serves financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies. The company was incorporated in 1996 and is headquartered in Petah Tikva, Israel.