Financial Comparison: Proofpoint (PFPT) versus Its Peers

Proofpoint (NASDAQ: PFPT) is one of 195 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare Proofpoint to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, analyst recommendations, risk and profitability.

Profitability

This table compares Proofpoint and its peers’ 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 -19.93% -51.52% -3.67%

Valuation & Earnings

This table compares Proofpoint and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Proofpoint $375.50 -$111.20 -40.56
Proofpoint Competitors $2,737.28 $282.94 49.54

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

Insider & Institutional Ownership

60.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 6.8% of Proofpoint shares are held by company insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Proofpoint has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Proofpoint’s peers have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Proofpoint and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Proofpoint 1 3 21 0 2.80
Proofpoint Competitors 688 4384 7134 155 2.55

Proofpoint presently has a consensus price target of $102.00, suggesting a potential upside of 13.80%. As a group, “IT Services & Consulting” companies have a potential upside of 1.23%. Given Proofpoint’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Proofpoint is more favorable than its peers.

Summary

Proofpoint peers 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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