Clarivate (NYSE:CCC) and Proofpoint (NASDAQ:PFPT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Valuation and Earnings
This table compares Clarivate and Proofpoint's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Clarivate | $974.34 million | 18.00 | $-210,980,000.00 | $0.35 | 82.69 |
Proofpoint | $888.19 million | 7.81 | $-130,260,000.00 | ($0.72) | -167.94 |
Proofpoint has lower revenue, but higher earnings than Clarivate. Proofpoint is trading at a lower price-to-earnings ratio than Clarivate, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Clarivate and Proofpoint, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Clarivate | 0 | 1 | 5 | 0 | 2.83 |
Proofpoint | 0 | 4 | 15 | 1 | 2.85 |
Clarivate presently has a consensus price target of $33.6667, suggesting a potential upside of 16.33%. Proofpoint has a consensus price target of $140.7368, suggesting a potential upside of 16.39%. Given Proofpoint's stronger consensus rating and higher probable upside, analysts clearly believe Proofpoint is more favorable than Clarivate.
Risk & Volatility
Clarivate has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Proofpoint has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Institutional & Insider Ownership
42.8% of Clarivate shares are owned by institutional investors. Comparatively, 92.8% of Proofpoint shares are owned by institutional investors. 2.3% of Clarivate shares are owned by company insiders. Comparatively, 2.9% of Proofpoint shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Clarivate and Proofpoint's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Clarivate | -18.75% | 7.92% | 3.39% |
Proofpoint | -15.46% | -6.63% | -1.63% |
Summary
Proofpoint beats Clarivate on 10 of the 15 factors compared between the two stocks.