Comparing XBP Europe (NASDAQ:XBP) and Radware (NASDAQ:RDWR)

Radware (NASDAQ:RDWR) and XBP Europe (NASDAQ:XBP) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Profitability

This table compares Radware and XBP Europe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Radware	2.20%	3.81%	2.16%
XBP Europe	-9.50%	N/A	-14.57%

Analyst Ratings

This is a summary of recent recommendations for Radware and XBP Europe, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radware	0	1	1	0	2.50
XBP Europe	0	0	0	0	0.00

Radware currently has a consensus target price of $30.00, indicating a potential upside of 31.41%. Given Radware’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Radware is more favorable than XBP Europe.

Risk & Volatility

Radware has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, XBP Europe has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500.

Insider & Institutional Ownership

73.1% of Radware shares are held by institutional investors. Comparatively, 15.7% of XBP Europe shares are held by institutional investors. 21.6% of Radware shares are held by insiders. Comparatively, 82.5% of XBP Europe shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Radware and XBP Europe”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radware	$274.88 million	3.49	$6.04 million	$0.14	163.07
XBP Europe	$142.77 million	0.27	-$11.05 million	N/A	N/A

Radware has higher revenue and earnings than XBP Europe.

Summary

Radware beats XBP Europe on 11 of the 12 factors compared between the two stocks.

About Radware

Radware Ltd., together with its subsidiaries, develops, manufactures, and markets cyber security and application delivery solutions for cloud, on-premises, and software defined data centers worldwide. The company operates in two segments, Radware’s Core Business and The Hawks’ Business. It offers DefensePro provides automated DDoS protection; Radware Kubernetes, a web application firewall solution; and Cyber Controller, a unified solution for management, configuration, and attack lifecycle. The company also provides Alteon, an application delivery and security solution that manages application traffic across cloud and data center locations for optimizing availability and performance; and LinkProof NG, a multi-homing and enterprise gateway solution. In addition, it offers ERT Security Updates Subscription that provides protection from network elements, hosts, and applications; ERT Active Attackers Feed, a threat intelligence feed to protect against DDoS threats; ERT Protection Packages; Alteon Global Elastic License, a purchasing and deployment subscription; MSSP Portal, a DDoS detection and mitigation service portal; Location-based Mitigation that enables network traffic based on the geolocation mapping of IP subnets; and Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud. Further, the company provides Cloud Web DDoS Protection, Cloud WAF Service, Bot Manager, Cloud-Native Protector, and Cloud Application Protection Services, as well as technical support, professional, managed, and training and certification services. It sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. The company was founded in 1996 and is headquartered in Tel Aviv, Israel.

About XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.