Proofpoint (NASDAQ: PFPT) is one of 204 public companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare Proofpoint to similar companies based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, earnings, dividends and risk.

Risk & Volatility

Proofpoint has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Proofpoint’s rivals have a beta of 1.09, suggesting that their average share price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

62.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 6.8% of Proofpoint shares are held by insiders. Comparatively, 16.3% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Proofpoint and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Proofpoint -20.19% -158.19% -7.03%
Proofpoint Competitors -19.63% -51.55% -3.52%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Proofpoint and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Proofpoint 1 3 21 0 2.80
Proofpoint Competitors 709 4597 7309 165 2.54

Proofpoint currently has a consensus price target of $102.00, suggesting a potential upside of 14.52%. As a group, “IT Services & Consulting” companies have a potential downside of 1.99%. Given Proofpoint’s stronger consensus rating and higher possible upside, equities analysts clearly believe Proofpoint is more favorable than its rivals.

Valuation & Earnings

This table compares Proofpoint and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Proofpoint $375.50 million -$111.20 million -40.30
Proofpoint Competitors $2.74 billion $282.94 million 242.91

Proofpoint’s rivals have higher revenue and earnings than Proofpoint. Proofpoint is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Proofpoint rivals beat Proofpoint on 8 of the 12 factors compared.

About Proofpoint

Proofpoint, Inc. is a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive and govern their sensitive data. The Company’s security-as-a-service platform consists of an integrated suite of on-demand data protection solutions, including threat protection, incident response, regulatory compliance, archiving, governance, eDiscovery and secure communication. The Company’s solutions are built on a cloud-based platform. The Company provides a multi-tiered security-as-a-service platform, including solutions, platform technologies and infrastructure. Its product families include Email Security, Proofpoint Advanced Threat Protection, Proofpoint Information Protection and Archiving, and Proofpoint Digital Risk Protection. The Company’s platform services include Threat detection, Threat intel extraction, Nexus threat graph, Real-time detection, Information classification and Intelligent policy.

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