Head-To-Head Comparison: SecureWorks (NASDAQ:SCWX) vs. Cellebrite DI (NASDAQ:CLBT)

Cellebrite DI (NASDAQ:CLBT) and SecureWorks (NASDAQ:SCWX) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

45.9% of Cellebrite DI shares are owned by institutional investors. Comparatively, 14.4% of SecureWorks shares are owned by institutional investors. 5.7% of Cellebrite DI shares are owned by insiders. Comparatively, 81.5% of SecureWorks shares are owned by 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cellebrite DI	$325.11 million	12.85	-$81.10 million	($1.55)	-13.09
SecureWorks	$365.88 million	2.05	-$86.04 million	($0.99)	-8.55

Cellebrite DI has higher earnings, but lower revenue 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.

Analyst Ratings

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

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

Cellebrite DI presently has a consensus price target of $20.57, indicating a potential upside of 1.39%. SecureWorks has a consensus price target of $7.00, indicating a potential downside of 17.26%. Given Cellebrite DI’s stronger consensus rating and higher possible upside, equities analysts clearly believe Cellebrite DI is more favorable than SecureWorks.

Volatility and Risk

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

Profitability

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

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

Summary

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

About Cellebrite DI

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.

About SecureWorks

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.