Contrasting Adobe Systems (ADBE) & Cyren (CYRN)

Adobe Systems (NASDAQ: ADBE) and Cyren (NASDAQ:CYRN) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

86.2% of Adobe Systems shares are owned by institutional investors. Comparatively, 12.9% of Cyren shares are owned by institutional investors. 0.4% of Adobe Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Adobe Systems and Cyren’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adobe Systems 23.20% 22.15% 12.93%
Cyren -47.98% -54.48% -29.14%

Analyst Recommendations

This is a summary of current ratings for Adobe Systems and Cyren, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adobe Systems 0 7 24 0 2.77
Cyren 0 0 0 0 N/A

Adobe Systems currently has a consensus target price of $196.97, suggesting a potential downside of 2.28%. Given Adobe Systems’ higher probable upside, research analysts clearly believe Adobe Systems is more favorable than Cyren.

Valuation & Earnings

This table compares Adobe Systems and Cyren’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adobe Systems $7.30 billion 13.57 $1.69 billion $3.38 59.63
Cyren $30.80 million 3.32 -$16.33 million ($0.38) -5.39

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

Volatility and Risk

Adobe Systems has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Cyren has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Summary

Adobe Systems beats Cyren on 13 of the 13 factors compared between the two stocks.

Adobe Systems Company Profile

Adobe Systems Incorporated is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences. It operates through three segments: Digital Media, Digital Marketing, and Print and Publishing. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content. Its Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Its Print and Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to its legacy type and original equipment manufacturer (OEM) printing businesses.

Cyren Company Profile

Cyren Ltd is engaged in developing and marketing information security solutions for protecting Web, e-mail and mobile transactions. The Company is a Security-as-a-Service provider of integrated cloud-based security technology solutions that mitigate cyber threats, malware attacks, information leaks, legal liability and productivity loss through the application of cyber intelligence. It delivers security services to a range of customers and original equipment manufacturer, and service provider distribution partners, including network and security vendors offering content security gateways, unified threat management solutions and antivirus solutions, and to service providers, such as Software-as-a-Service vendors, Web hosting providers and Internet service providers. Its technologies include CYREN GlobalView Cloud and Recurrent Pattern Detection. Its offerings include CYREN WebSecurity (CWS), CYREN EmailSecurity, Cyber Intelligence Suite and Embedded Solutions.

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