Digital China (OTCMKTS:DCHIF) and FireEye (NASDAQ:FEYE) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Volatility and Risk
Digital China has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, FireEye has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.
Valuation & Earnings
This table compares Digital China and FireEye’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Digital China | $1.58 billion | 0.50 | $50.14 million | N/A | N/A |
| FireEye | $751.09 million | 4.40 | -$303.69 million | ($1.09) | -15.40 |
Digital China has higher revenue and earnings than FireEye.
Analyst Ratings
This is a breakdown of current ratings and price targets for Digital China and FireEye, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Digital China | 0 | 0 | 0 | 0 | N/A |
| FireEye | 0 | 8 | 7 | 0 | 2.47 |
FireEye has a consensus target price of $20.21, indicating a potential upside of 20.39%. Given FireEye’s higher probable upside, analysts plainly believe FireEye is more favorable than Digital China.
Insider & Institutional Ownership
73.9% of FireEye shares are owned by institutional investors. 2.4% of FireEye shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Digital China and FireEye’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Digital China | N/A | N/A | N/A |
| FireEye | -33.32% | -22.98% | -6.14% |
Summary
FireEye beats Digital China on 6 of the 11 factors compared between the two stocks.
Digital China Company Profile
Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China. It operates in three segments: DCITS, Supply Chain Services, and New Business. The company offers proprietary software, services, cloud computing, and big data analysis with the strategy of integrating [email protected] city and [email protected] agriculture. It also provides intermediary and backstage logistics services for corporate customers, e-commerce platforms, branded service providers, and individuals; and [email protected] city services for city administrators, enterprises, and citizens based on the urban information management center, integrated citizen service platform, integrated enterprise service platform, and integrated city administration platform, as well as financial services, such as financing, factoring, leasing, guarantee, etc. to third party customers. In addition, the company offers logistics, finance lease, data integration and management software sale, systems integration, application software development, maintenance and outsourcing, consultancy and training, financial specialized equipment sale, surveying service software, and network optimization services. Further, it holds trademarks; and develops and constructs science and technology parks. The company was incorporated in 2000 and is headquartered in Quarry Bay, Hong Kong.
FireEye Company Profile
FireEye, Inc. provides cybersecurity solutions that allow organizations to prepare for, prevent, respond to, and remediate cyber-attacks. It offers vector-specific appliance, virtual appliance, and cloud-based solutions to detect and block known and unknown cyber-attacks. The company provides threat detection and prevention solutions, including network security products, email security solutions, and endpoint security solutions. It also offers security management and orchestration products, such as Central Management System, FireEye Security Orchestrator, and FireEye Helix platform; and forensics and investigation products, such as Threat Analytics Platform and Enterprise Forensics series of appliances. In addition, the company provides Security-as-a-Service solutions comprising cloud-based Email Threat Prevention solution and managed Defense/FireEye-as-a-Service offering; threat intelligence subscriptions, such as Dynamic Threat Intelligence cloud and FireEye iSIGHT Intelligence; and customer support and maintenance services. Further, it offers professional services, including incident response, compromise assessments, and related security consulting services; cyber threat intelligence services; and training services. The company serves telecommunications providers, financial services entities, Internet search engines, social networking sites, stock exchanges, electrical grid operators, networking vendors, oil and gas companies, healthcare and pharmaceutical companies, and local and international governmental agencies. FireEye, Inc. provides its products and services through distributors, resellers, and strategic partners in the United States, the Asia Pacific, Japan, Europe, the Middle East, Africa, and other regions. The company was formerly known as NetForts, Inc. and changed its name to FireEye, Inc. in September 2005. FireEye, Inc. was founded in 2004 and is headquartered in Milpitas, California.
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