Analyzing NortonLifeLock (NLOK) & The Competition

NortonLifeLock (NASDAQ: NLOK) is one of 212 public companies in the “Prepackaged software” industry, but how does it contrast to its rivals? We will compare NortonLifeLock to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for NortonLifeLock and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NortonLifeLock 0 3 1 0 2.25
NortonLifeLock Competitors 2109 9546 17032 882 2.56

NortonLifeLock presently has a consensus price target of $26.00, indicating a potential upside of 4.04%. As a group, “Prepackaged software” companies have a potential upside of 8.95%. Given NortonLifeLock’s rivals stronger consensus rating and higher possible upside, analysts clearly believe NortonLifeLock has less favorable growth aspects than its rivals.

Profitability

This table compares NortonLifeLock and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NortonLifeLock 21.39% 12.82% 4.61%
NortonLifeLock Competitors -6.57% -88.19% -6.60%

Dividends

NortonLifeLock pays an annual dividend of $0.50 per share and has a dividend yield of 2.0%. NortonLifeLock pays out 42.7% of its earnings in the form of a dividend. As a group, “Prepackaged software” companies pay a dividend yield of 1.2% and pay out 37.5% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares NortonLifeLock and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NortonLifeLock $4.73 billion $31.00 million 21.36
NortonLifeLock Competitors $2.01 billion $380.10 million 27.99

NortonLifeLock has higher revenue, but lower earnings than its rivals. NortonLifeLock is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

84.1% of NortonLifeLock shares are held by institutional investors. Comparatively, 63.6% of shares of all “Prepackaged software” companies are held by institutional investors. 0.4% of NortonLifeLock shares are held by company insiders. Comparatively, 18.7% of shares of all “Prepackaged software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

NortonLifeLock has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, NortonLifeLock’s rivals have a beta of -8.67, indicating that their average stock price is 967% less volatile than the S&P 500.

Summary

NortonLifeLock rivals beat NortonLifeLock on 8 of the 15 factors compared.

NortonLifeLock Company Profile

NortonLifeLock Inc. provides cyber security products, services, and solutions worldwide. The company offers Norton security solutions as a subscription service providing protection for devices against malware, viruses, adware, and ransomware on various platforms; and LifeLock identity theft protection solution that provides identity monitoring, alerts, and restoration to its customers. It also provides Norton Secure VPN and other consumer security solutions, as well as Norton Wi-Fi Privacy VPN. The company serves enterprises, including business, government, and public-sector customers; small, medium, and large businesses; and individuals, households, and small businesses. It markets and sells its products and related services through direct sales force, direct marketing and co-marketing programs, e-commerce and telesales platforms, distributors, Internet-based resellers, system builders, Internet service providers, employee benefits providers, wireless carriers, retailers, original equipment manufacturers, and retail and online stores. The company was formerly known as Symantec Corporation and changed its name to NortonLifeLock Inc. in November 2019. NortonLifeLock Inc. was founded in 1982 and is based in Tempe, Arizona.

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