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CHKP vs. EA: A Head-to-Head Stock Comparison

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Here’s a clear look at CHKP and EA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCHKPEA
Company NameCheck Point Software Technologies Ltd.Electronic Arts Inc.
CountryIsraelUnited States
GICS SectorInformation TechnologyCommunication Services
GICS IndustrySoftwareEntertainment
Market Capitalization21.91 billion USD50.28 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 28, 1996September 20, 1989
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CHKP and EA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

CHKP vs. EA: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCHKPEA
5-Day Price Return1.76%19.79%
13-Week Price Return-6.48%26.76%
26-Week Price Return-9.20%38.77%
52-Week Price Return7.19%40.57%
Month-to-Date Return7.13%-0.03%
Year-to-Date Return10.82%37.82%
10-Day Avg. Volume0.84M7.07M
3-Month Avg. Volume0.84M3.29M
3-Month Volatility36.46%39.80%
Beta0.590.77

Profitability

Return on Equity (TTM)

CHKP

30.64%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

In the upper quartile for the Software industry, CHKP’s Return on Equity of 30.64% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

EA

15.27%

Entertainment Industry

Max
42.50%
Q3
24.06%
Median
13.69%
Q1
5.35%
Min
-17.95%

EA’s Return on Equity of 15.27% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

CHKP vs. EA: A comparison of their Return on Equity (TTM) against their respective Software and Entertainment industry benchmarks.

Net Profit Margin (TTM)

CHKP

32.48%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

A Net Profit Margin of 32.48% places CHKP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

EA

13.94%

Entertainment Industry

Max
45.33%
Q3
24.40%
Median
13.94%
Q1
4.28%
Min
-23.67%

EA’s Net Profit Margin of 13.94% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.

CHKP vs. EA: A comparison of their Net Profit Margin (TTM) against their respective Software and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

CHKP

33.00%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

An Operating Profit Margin of 33.00% places CHKP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

EA

19.09%

Entertainment Industry

Max
41.77%
Q3
28.26%
Median
16.13%
Q1
8.03%
Min
-3.93%

EA’s Operating Profit Margin of 19.09% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

CHKP vs. EA: A comparison of their Operating Profit Margin (TTM) against their respective Software and Entertainment industry benchmarks.

Profitability at a Glance

SymbolCHKPEA
Return on Equity (TTM)30.64%15.27%
Return on Assets (TTM)15.25%8.23%
Net Profit Margin (TTM)32.48%13.94%
Operating Profit Margin (TTM)33.00%19.09%
Gross Profit Margin (TTM)86.92%79.14%

Financial Strength

Current Ratio (MRQ)

CHKP

1.19

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

CHKP’s Current Ratio of 1.19 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

EA

0.84

Entertainment Industry

Max
6.76
Q3
4.02
Median
1.55
Q1
0.86
Min
0.38

EA’s Current Ratio of 0.84 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CHKP vs. EA: A comparison of their Current Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CHKP

0.00

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

CHKP’s Debt-to-Equity Ratio of 0.00 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

EA

0.31

Entertainment Industry

Max
1.54
Q3
0.77
Median
0.16
Q1
0.02
Min
0.00

EA’s Debt-to-Equity Ratio of 0.31 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CHKP vs. EA: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

CHKP

1.00

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

CHKP’s Interest Coverage Ratio of 1.00 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

EA

190.43

Entertainment Industry

Max
87.17
Q3
35.59
Median
7.06
Q1
1.13
Min
-44.74

With an Interest Coverage Ratio of 190.43, EA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

CHKP vs. EA: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Financial Strength at a Glance

SymbolCHKPEA
Current Ratio (MRQ)1.190.84
Quick Ratio (MRQ)1.130.84
Debt-to-Equity Ratio (MRQ)0.000.31
Interest Coverage Ratio (TTM)1.00190.43

Growth

Revenue Growth

CHKP vs. EA: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CHKP vs. EA: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CHKP

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

CHKP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

EA

0.39%

Entertainment Industry

Max
2.90%
Q3
1.29%
Median
0.59%
Q1
0.00%
Min
0.00%

EA’s Dividend Yield of 0.39% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

CHKP vs. EA: A comparison of their Dividend Yield (TTM) against their respective Software and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

CHKP

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

CHKP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

EA

18.91%

Entertainment Industry

Max
82.30%
Q3
38.45%
Median
29.74%
Q1
0.00%
Min
0.00%

EA’s Dividend Payout Ratio of 18.91% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CHKP vs. EA: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Dividend at a Glance

SymbolCHKPEA
Dividend Yield (TTM)0.00%0.39%
Dividend Payout Ratio (TTM)0.00%18.91%

Valuation

Price-to-Earnings Ratio (TTM)

CHKP

25.76

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

In the lower quartile for the Software industry, CHKP’s P/E Ratio of 25.76 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

EA

48.48

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

EA’s P/E Ratio of 48.48 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CHKP vs. EA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

CHKP

8.37

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

CHKP’s P/S Ratio of 8.37 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

EA

6.76

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

EA’s P/S Ratio of 6.76 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CHKP vs. EA: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

CHKP

8.46

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

CHKP’s P/B Ratio of 8.46 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

EA

6.60

Entertainment Industry

Max
22.84
Q3
10.54
Median
6.60
Q1
2.30
Min
0.65

EA’s P/B Ratio of 6.60 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

CHKP vs. EA: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Entertainment industry benchmarks.

Valuation at a Glance

SymbolCHKPEA
Price-to-Earnings Ratio (TTM)25.7648.48
Price-to-Sales Ratio (TTM)8.376.76
Price-to-Book Ratio (MRQ)8.466.60
Price-to-Free Cash Flow Ratio (TTM)18.9927.19