Tufin Software Technologies (NYSE:TUFN) and Aerohive Networks (NYSE:HIVE) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Institutional & Insider Ownership

7.3% of Tufin Software Technologies shares are held by institutional investors. Comparatively, 62.8% of Aerohive Networks shares are held by institutional investors. 9.4% of Aerohive Networks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Tufin Software Technologies and Aerohive Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tufin Software Technologies N/A N/A N/A
Aerohive Networks -15.31% -102.48% -11.26%

Valuation & Earnings

This table compares Tufin Software Technologies and Aerohive Networks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tufin Software Technologies $84.98 million 6.26 -$4.26 million N/A N/A
Aerohive Networks $154.91 million 1.65 -$18.34 million ($0.29) -15.31

Tufin Software Technologies has higher earnings, but lower revenue than Aerohive Networks.

Analyst Ratings

This is a summary of current ratings and price targets for Tufin Software Technologies and Aerohive Networks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tufin Software Technologies 0 2 6 0 2.75
Aerohive Networks 0 2 0 0 2.00

Tufin Software Technologies currently has a consensus target price of $29.57, indicating a potential upside of 80.31%. Given Tufin Software Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Tufin Software Technologies is more favorable than Aerohive Networks.

Summary

Tufin Software Technologies beats Aerohive Networks on 8 of the 11 factors compared between the two stocks.

Tufin Software Technologies Company Profile

Tufin Ltd. provides security policy management solutions. It offers Orchestration Suite, a solution for automatically designing, provisioning, analyzing, and auditing network security changes from the application layer down to the network layer; SecureTrack, a management platform for firewalls, routers, load-balancers, and additional network devices; SecureChange, a solution for automating firewall and router configuration changes across complex networks; SecureApp, a solution that enables organizations to manage network connectivity and security policies; and Tufin Iris, a cloud-native solution that enables cloud operations and IT security teams to gain visibility and control of security policies for cloud-based applications. The company provides solutions in the areas of change management, software-defined data center, firewall optimization, payment card industry data security standard compliance, network segmentation, continuous compliance, risk management, next generation firewall, and business continuity aspects for firewall/network administrators, chief security officers/chief information security officers, compliance officers, service providers, independent auditors, application owners, and chief information officers. It serves telecommunication, financial, energy and utility, retail, government, transportation, and pharmaceutical markets through a network of partners worldwide. The company was founded in 2004 and is headquartered in Ramat Gan, Israel with additional offices in North America, Europe, and the Asia Pacific.

Aerohive Networks Company Profile

Aerohive Networks, Inc., together with its subsidiaries, designs and develops cloud networking and enterprise Wi-Fi solutions in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. The company provides hardware products, such as wireless access points, branch routers, and switches; tiered maintenance and support services comprising technical support, bug fixes, access to priority hardware replacement service, and unspecified upgrades; and Software as a Service subscriptions, including comparable maintenance and support services. Its cloud-based product comprises HiveManager, a network management application that features an updated user interface, improved troubleshooting, and expanded access to data and analytics, as well as an upgraded cloud-deployment platform. The company sells its products to industry verticals, including education, distributed enterprises, retail, hospitality, and healthcare through a network of authorized distributors, value-added resellers, and managed service providers. Aerohive Networks, Inc. was incorporated in 2006 and is headquartered in Milpitas, California.

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