LiveRamp (NYSE:RAMP) and Proofpoint (NASDAQ:PFPT) are both mid-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Earnings & Valuation
This table compares LiveRamp and Proofpoint's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| LiveRamp | $380.57 million | 8.79 | $-124,510,000.00 | ($1.85) | -27.01 |
| Proofpoint | $888.19 million | 11.09 | $-130,260,000.00 | ($0.72) | -238.47 |
LiveRamp has higher earnings, but lower revenue than Proofpoint. Proofpoint is trading at a lower price-to-earnings ratio than LiveRamp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for LiveRamp and Proofpoint, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| LiveRamp | 0 | 1 | 8 | 0 | 2.89 |
| Proofpoint | 0 | 12 | 8 | 0 | 2.40 |
LiveRamp presently has a consensus price target of $86.7778, suggesting a potential upside of 73.59%. Proofpoint has a consensus price target of $158.0714, suggesting a potential downside of 7.85%. Given LiveRamp's stronger consensus rating and higher possible upside, analysts clearly believe LiveRamp is more favorable than Proofpoint.
Institutional and Insider Ownership
97.1% of LiveRamp shares are held by institutional investors. Comparatively, 92.8% of Proofpoint shares are held by institutional investors. 5.3% of LiveRamp shares are held by insiders. Comparatively, 2.9% of Proofpoint shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares LiveRamp and Proofpoint's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| LiveRamp | -21.33% | -7.60% | -6.44% |
| Proofpoint | -15.46% | -6.63% | -1.63% |
Volatility and Risk
LiveRamp has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Proofpoint has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Summary
LiveRamp beats Proofpoint on 7 of the 13 factors compared between the two stocks.
