Big Move for XYZ, but Do CHKP’s Margins and Growth Give It the Edge?
Check Point Software Technologies (CHKP) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Block (XYZ), suggesting you may be better off investing in CHKP
- CHKP’s quarterly revenue growth was 6.5%, vs. XYZ’s -3.1%.
- In addition, its Last 12 Months growth came in at 6.4%, ahead of XYZ’s 4.6%.
- CHKP leads on profitability over both periods – LTM margin of 33.7% and 3-year average of 35.9%.
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Valuation & Performance Overview
| XYZ | CHKP | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 28.2 | 26.8 | CHKP |
| Revenue Growth | |||
| Last Quarter | -3.1% | 6.5% | CHKP |
| Last 12 Months | 4.6% | 6.4% | CHKP |
| Last 3 Year Average | 13.3% | 5.8% | XYZ |
| Operating Margins | |||
| Last 12 Months | 7.4% | 33.7% | CHKP |
| Last 3 Year Average | 3.9% | 35.9% | CHKP |
| Momentum | |||
| Last 3 Year Return | 7.9% | 73.0% | CHKP |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: XYZ Revenue Comparison | CHKP Revenue Comparison
See more margin details: XYZ Operating Income Comparison | CHKP Operating Income Comparison
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| XYZ Return | 248% | -26% | -61% | 23% | 10% | -5% | 29% | ||
| CHKP Return | 20% | -12% | 8% | 21% | 22% | 17% | 98% | <=== | |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 9% | 98% | ||
| Monthly Win Rates [3] | |||||||||
| XYZ Win Rate | 83% | 50% | 42% | 42% | 58% | 67% | 57% | ||
| CHKP Win Rate | 58% | 50% | 42% | 67% | 83% | 67% | 61% | <=== | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 50% | 61% | ||
| Max Drawdowns [4] | |||||||||
| XYZ Max Drawdown | -39% | -27% | -68% | -38% | -26% | -45% | -41% | ||
| CHKP Max Drawdown | -26% | -18% | -6% | -6% | -4% | -4% | -11% | <=== | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year