PROS Holdings (NYSE: PRO) and Hortonworks (NASDAQ:HDP) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares PROS Holdings and Hortonworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PROS Holdings -46.55% -2,114.05% -17.22%
Hortonworks -107.07% -765.37% -100.38%

Analyst Ratings

This is a breakdown of current recommendations and price targets for PROS Holdings and Hortonworks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PROS Holdings 0 1 6 0 2.86
Hortonworks 1 3 11 0 2.67

PROS Holdings presently has a consensus target price of $31.20, suggesting a potential upside of 18.45%. Hortonworks has a consensus target price of $18.33, suggesting a potential upside of 7.87%. Given PROS Holdings’ stronger consensus rating and higher possible upside, equities analysts plainly believe PROS Holdings is more favorable than Hortonworks.

Earnings and Valuation

This table compares PROS Holdings and Hortonworks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PROS Holdings $158.85 million 5.27 -$55.21 million ($2.40) -10.97
Hortonworks $217.29 million 3.24 -$223.00 million ($3.80) -4.47

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

Institutional & Insider Ownership

91.6% of PROS Holdings shares are held by institutional investors. Comparatively, 49.6% of Hortonworks shares are held by institutional investors. 18.9% of PROS Holdings shares are held by insiders. Comparatively, 26.0% of Hortonworks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

PROS Holdings has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, Hortonworks has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Summary

PROS Holdings beats Hortonworks on 8 of the 13 factors compared between the two stocks.

About PROS Holdings

PROS Holdings, Inc. (PROS) is a provider of revenue and profit realization solutions. The Company provides its solutions to enterprises across the manufacturing, distribution, services, and travel industries, including automotive and industrial, business-to-business (B2B) services, cargo, chemicals and energy, consumer goods, insurance, food and beverage, healthcare, high tech and travel. The Company offers its solutions through a software-as-a-service (SaaS) delivery model, as well as on a perpetual or term license basis. The Company also provides professional services to implement its software applications, as well as business consulting. In addition, the Company provides product maintenance and support to its customers through which they receive unspecified upgrades, maintenance releases and bug fixes during the term of the support period on a when-and-if-available basis. Its cloud solutions for revenue and profit realization include SellingPRO, PricingPRO and RevenuePRO.

About Hortonworks

Hortonworks, Inc. is a provider and distributor of enterprise-scale data management software platforms. The Company’s product offerings include Hortonworks Data Platform (HDP), Hortonworks Sandbox and Hortonworks DataFlow Platform (HDF). It provides support subscription offerings and related professional services for its enterprise-scale Connected Data Platforms, such as HDP and HDF. Its Data at Rest solution, the HDP, is an enterprise-scale data management platform built entirely on open source software, including Apache Hadoop. HDP combines computer servers with local storage and open source software technology to create a distributed compute and storage platform for data sets that is secure and scalable over petabytes of data within thousands of servers or nodes. Its Data in Motion solution, the HDF, is an enterprise-scale data ingest platform built entirely on open source software, including Apache NiFi.

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