Weave Communications (NYSE:WEAV) and SecureWorks (NASDAQ:SCWX) Head-To-Head Comparison

SecureWorks (NASDAQ:SCWX) and Weave Communications (NYSE:WEAV) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Profitability

This table compares SecureWorks and Weave Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SecureWorks	-25.49%	-5.71%	-3.93%
Weave Communications	-13.87%	-28.37%	-10.49%

Valuation & Earnings

This table compares SecureWorks and Weave Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SecureWorks	$365.88 million	2.07	-$86.04 million	($0.99)	-8.60
Weave Communications	$204.31 million	4.49	-$31.03 million	($0.39)	-32.33

Weave Communications has lower revenue, but higher earnings than SecureWorks. Weave Communications is trading at a lower price-to-earnings ratio than SecureWorks, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

SecureWorks has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for SecureWorks and Weave Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SecureWorks	1	1	0	0	1.50
Weave Communications	0	1	2	1	3.00

SecureWorks currently has a consensus target price of $7.00, suggesting a potential downside of 17.74%. Weave Communications has a consensus target price of $17.38, suggesting a potential upside of 37.79%. Given Weave Communications’ stronger consensus rating and higher probable upside, analysts plainly believe Weave Communications is more favorable than SecureWorks.

Insider & Institutional Ownership

14.4% of SecureWorks shares are owned by institutional investors. Comparatively, 86.8% of Weave Communications shares are owned by institutional investors. 81.5% of SecureWorks shares are owned by insiders. Comparatively, 36.3% of Weave Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Weave Communications beats SecureWorks on 10 of the 15 factors compared between the two stocks.

About SecureWorks

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. The company's solutions include software-as-a-service solutions; managed security services; and professional services, including incident response and penetration testing services. Its solutions enable organizations to prevent security breaches, detect malicious activity, respond rapidly to security breaches, and identify emerging threats. The company sells its solutions primarily through its referral agents, regional value-added resellers, trade associations, and managed security service providers. It serves customers in a range of industries, including financial services, manufacturing, technology, retail, insurance, utility, and healthcare sectors. The company was formerly known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. SecureWorks Corp. was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Marketing L.P.

About Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.