Software - Infrastructure
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NTCT vs RDWR
Revenue, margins, valuation, and 5-year total return — side by side.
Software - Infrastructure
NTCT vs RDWR — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Infrastructure | Software - Infrastructure |
| Market Cap | $2.57B | $1.16B |
| Revenue (TTM) | $861M | $302M |
| Net Income (TTM) | $96M | $20M |
| Gross Margin | 79.2% | 80.7% |
| Operating Margin | 12.8% | 3.8% |
| Forward P/E | 14.7x | 24.2x |
| Total Debt | $76M | $17M |
| Cash & Equiv. | $457M | $105M |
NTCT vs RDWR — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| NetScout Systems, I… (NTCT) | 100 | 129.3 | +29.3% |
| Radware Ltd. (RDWR) | 100 | 112.8 | +12.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: NTCT vs RDWR
Each card shows where this stock fits in a portfolio — not just who wins on paper.
NTCT carries the broadest edge in this set and is the clearest fit for value and quality.
- Lower P/E (14.7x vs 24.2x)
- 11.1% margin vs RDWR's 6.7%
- +68.7% vs RDWR's +18.0%
RDWR is the clearest fit if your priority is income & stability and growth exposure.
- beta 0.99
- Rev growth 9.8%, EPS growth 221.4%, 3Y rev CAGR 0.9%
- 151.7% 10Y total return vs NTCT's 57.1%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 9.8% revenue growth vs NTCT's -0.8% | |
| Value | Lower P/E (14.7x vs 24.2x) | |
| Quality / Margins | 11.1% margin vs RDWR's 6.7% | |
| Stability / Safety | Beta 0.99 vs NTCT's 1.12, lower leverage | |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | +68.7% vs RDWR's +18.0% | |
| Efficiency (ROA) | 4.3% ROA vs RDWR's 3.1%, ROIC -19.3% vs 3.0% |
NTCT vs RDWR — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
NTCT vs RDWR — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
Evenly matched — NTCT and RDWR each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
NTCT is the larger business by revenue, generating $861M annually — 2.9x RDWR's $302M. Profitability is closely matched — net margins range from 11.1% (NTCT) to 6.7% (RDWR). On growth, RDWR holds the edge at +9.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $861M | $302M |
| EBITDAEarnings before interest/tax | $171M | $23M |
| Net IncomeAfter-tax profit | $96M | $20M |
| Free Cash FlowCash after capex | $275M | $43M |
| Gross MarginGross profit ÷ Revenue | +79.2% | +80.7% |
| Operating MarginEBIT ÷ Revenue | +12.8% | +3.8% |
| Net MarginNet income ÷ Revenue | +11.1% | +6.7% |
| FCF MarginFCF ÷ Revenue | +32.0% | +14.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.5% | +9.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +11.9% | +131.7% |
Valuation Metrics
NTCT leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
| Metric | ||
|---|---|---|
| Market CapShares × price | $2.6B | $1.2B |
| Enterprise ValueMkt cap + debt − cash | $2.2B | $1.1B |
| Trailing P/EPrice ÷ TTM EPS | -7.02x | 59.69x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.72x | 24.19x |
| PEG RatioP/E ÷ EPS growth rate | — | 3.39x |
| EV / EBITDAEnterprise value multiple | — | 46.37x |
| Price / SalesMarket cap ÷ Revenue | 3.12x | 3.84x |
| Price / BookPrice ÷ Book value/share | 1.65x | 3.07x |
| Price / FCFMarket cap ÷ FCF | 12.16x | 27.89x |
Profitability & Efficiency
RDWR leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
NTCT delivers a 6.1% return on equity — every $100 of shareholder capital generates $6 in annual profit, vs $5 for RDWR. RDWR carries lower financial leverage with a 0.04x debt-to-equity ratio, signaling a more conservative balance sheet compared to NTCT's 0.05x. On the Piotroski fundamental quality scale (0–9), RDWR scores 7/9 vs NTCT's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +6.1% | +5.3% |
| ROA (TTM)Return on assets | +4.3% | +3.1% |
| ROICReturn on invested capital | -19.3% | +3.0% |
| ROCEReturn on capital employed | -18.5% | +2.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.05x | 0.04x |
| Net DebtTotal debt minus cash | -$381M | -$88M |
| Cash & Equiv.Liquid assets | $457M | $105M |
| Total DebtShort + long-term debt | $76M | $17M |
| Interest CoverageEBIT ÷ Interest expense | 55.89x | — |
Total Returns (Dividends Reinvested)
Evenly matched — NTCT and RDWR each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in NTCT five years ago would be worth $13,542 today (with dividends reinvested), compared to $9,757 for RDWR. Over the past 12 months, NTCT leads with a +68.7% total return vs RDWR's +18.0%. The 3-year compound annual growth rate (CAGR) favors RDWR at 11.4% vs NTCT's 6.5% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +32.3% | +13.0% |
| 1-Year ReturnPast 12 months | +68.7% | +18.0% |
| 3-Year ReturnCumulative with dividends | +20.9% | +38.2% |
| 5-Year ReturnCumulative with dividends | +35.4% | -2.4% |
| 10-Year ReturnCumulative with dividends | +57.1% | +151.7% |
| CAGR (3Y)Annualised 3-year return | +6.5% | +11.4% |
Risk & Volatility
Evenly matched — NTCT and RDWR each lead in 1 of 2 comparable metrics.
Risk & Volatility
RDWR is the less volatile stock with a 0.99 beta — it tends to amplify market swings less than NTCT's 1.12 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NTCT currently trades 98.9% from its 52-week high vs RDWR's 85.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.12x | 0.99x |
| 52-Week HighHighest price in past year | $35.93 | $31.57 |
| 52-Week LowLowest price in past year | $19.98 | $21.29 |
| % of 52W HighCurrent price vs 52-week peak | +98.9% | +85.1% |
| RSI (14)Momentum oscillator 0–100 | 71.2 | 59.2 |
| Avg Volume (50D)Average daily shares traded | 541K | 227K |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates NTCT as "Hold" and RDWR as "Hold". Consensus price targets imply -6.9% upside for RDWR (target: $25) vs -18.4% for NTCT (target: $29).
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $29.00 | $25.00 |
| # AnalystsCovering analysts | 21 | 14 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +1.0% | +0.9% |
NTCT leads in 1 of 6 categories (Valuation Metrics). RDWR leads in 1 (Profitability & Efficiency). 3 tied.
NTCT vs RDWR: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is NTCT or RDWR a better buy right now?
For growth investors, Radware Ltd.
(RDWR) is the stronger pick with 9. 8% revenue growth year-over-year, versus -0. 8% for NetScout Systems, Inc. (NTCT). Radware Ltd. (RDWR) offers the better valuation at 59. 7x trailing P/E (24. 2x forward), making it the more compelling value choice. Analysts rate NetScout Systems, Inc. (NTCT) a "Hold" — based on 21 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — NTCT or RDWR?
On forward P/E, NetScout Systems, Inc.
is actually cheaper at 14. 7x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — NTCT or RDWR?
Over the past 5 years, NetScout Systems, Inc.
(NTCT) delivered a total return of +35. 4%, compared to -2. 4% for Radware Ltd. (RDWR). Over 10 years, the gap is even starker: RDWR returned +151. 7% versus NTCT's +57. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NTCT or RDWR?
By beta (market sensitivity over 5 years), Radware Ltd.
(RDWR) is the lower-risk stock at 0. 99β versus NetScout Systems, Inc. 's 1. 12β — meaning NTCT is approximately 13% more volatile than RDWR relative to the S&P 500. On balance sheet safety, Radware Ltd. (RDWR) carries a lower debt/equity ratio of 4% versus 5% for NetScout Systems, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — NTCT or RDWR?
By revenue growth (latest reported year), Radware Ltd.
(RDWR) is pulling ahead at 9. 8% versus -0. 8% for NetScout Systems, Inc. (NTCT). On earnings-per-share growth, the picture is similar: Radware Ltd. grew EPS 221. 4% year-over-year, compared to -144. 4% for NetScout Systems, Inc.. Over a 3-year CAGR, RDWR leads at 0. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — NTCT or RDWR?
Radware Ltd.
(RDWR) is the more profitable company, earning 6. 7% net margin versus -44. 6% for NetScout Systems, Inc. — meaning it keeps 6. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RDWR leads at 3. 8% versus -44. 7% for NTCT. At the gross margin level — before operating expenses — RDWR leads at 80. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is NTCT or RDWR more undervalued right now?
On forward earnings alone, NetScout Systems, Inc.
(NTCT) trades at 14. 7x forward P/E versus 24. 2x for Radware Ltd. — 9. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RDWR: -6. 9% to $25. 00.
08Which pays a better dividend — NTCT or RDWR?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is NTCT or RDWR better for a retirement portfolio?
For long-horizon retirement investors, Radware Ltd.
(RDWR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 99), +151. 7% 10Y return). Both have compounded well over 10 years (RDWR: +151. 7%, NTCT: +57. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between NTCT and RDWR?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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