ServiceSource International (NASDAQ: SREV) and Imperva (NYSE:IMPV) 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 institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
This table compares ServiceSource International and Imperva’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ServiceSource International has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Imperva has a beta of 2.23, meaning that its stock price is 123% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for ServiceSource International and Imperva, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ServiceSource International presently has a consensus target price of $5.25, suggesting a potential upside of 48.31%. Imperva has a consensus target price of $51.82, suggesting a potential upside of 20.66%. Given ServiceSource International’s higher probable upside, equities analysts clearly believe ServiceSource International is more favorable than Imperva.
Institutional and Insider Ownership
74.9% of ServiceSource International shares are held by institutional investors. Comparatively, 92.7% of Imperva shares are held by institutional investors. 17.9% of ServiceSource International shares are held by insiders. Comparatively, 2.2% of Imperva shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares ServiceSource International and Imperva’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ServiceSource International||$246.14 million||1.28||-$6.57 million||($0.49)||-7.22|
|Imperva||$293.55 million||4.95||-$18.92 million||($2.06)||-20.85|
ServiceSource International has higher revenue, but lower earnings than Imperva. Imperva is trading at a lower price-to-earnings ratio than ServiceSource International, indicating that it is currently the more affordable of the two stocks.
Imperva beats ServiceSource International on 7 of the 13 factors compared between the two stocks.
ServiceSource International Company Profile
ServiceSource International, Inc. (ServiceSource) is a provider of customer and revenue lifecycle solutions that power enterprise revenue relationships, partnering with business to business technology and technology-enabled companies. The Company operates through two segments: Managed Services, and Cloud and Business Intelligence (CBI). The Company delivers through service teams and integral cloud-based technologies from its database of service. By integrating managed services, cloud software and data, the Company provides its clients with insights into their end customers businesses, end-to-end management and service-contract renewals process. As of December 31, 2016, it managed approximately 143 engagements across 66 clients. Its solutions are designed to optimize recurring revenue across various revenue models, distribution models and segments, including hardware, software, Software-as-a-Service (SaaS), industrial systems, technology-enabled healthcare and life sciences.
Imperva Company Profile
Imperva, Inc. provides cyber-security solutions that protect business-critical data and applications whether in the cloud or on premises. The Company is engaged in the development, marketing, sales, service and support of cyber-security solutions. The Company’s products include its Imperva SecureSphere Paltform, Imperva CounterBreach and Imperva Camouflage for enterprise data centers, and Imperva Incapsula offering for cloud-based security services. Its Imperva SecureSphere provides database, file and Web application security across various physical and virtual systems in data centers, including in private, public and hybrid cloud computing environments. Its Imperva Incapsula product line provides cloud-based Website security, denial of service protection and performance solutions. Its Imperva Camouflage creates realistic, functional data for development, testing, and training by disguising sensitive information, while maintaining the characteristics of the original data.
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