Contrasting Proofpoint (PFPT) and RingCentral (RNG)
Proofpoint (NASDAQ:PFPT) and RingCentral (NYSE:RNG) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
This table compares Proofpoint and RingCentral’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
97.8% of Proofpoint shares are held by institutional investors. Comparatively, 78.0% of RingCentral shares are held by institutional investors. 6.0% of Proofpoint shares are held by insiders. Comparatively, 12.0% of RingCentral 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.
Risk & Volatility
Proofpoint has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, RingCentral has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Proofpoint and RingCentral, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Proofpoint presently has a consensus target price of $124.90, suggesting a potential upside of 32.04%. RingCentral has a consensus target price of $90.14, suggesting a potential upside of 9.53%. Given Proofpoint’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Proofpoint is more favorable than RingCentral.
Earnings and Valuation
This table compares Proofpoint and RingCentral’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Proofpoint||$515.29 million||10.03||-$84.33 million||($1.31)||-72.21|
|RingCentral||$501.53 million||13.18||-$26.14 million||($0.35)||-235.14|
RingCentral has lower revenue, but higher earnings than Proofpoint. RingCentral is trading at a lower price-to-earnings ratio than Proofpoint, indicating that it is currently the more affordable of the two stocks.
Proofpoint, Inc. operates as a security-as-a-service (SaaS) provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide. It offers protection against advanced and targeted threats, including malicious attachments, polymorphic threats, zero-day exploits, user-transparent drive-by' downloads, malicious Web links, hybrid threats, malware free attacks, and other penetration tactics. The company also provides solutions for email security, such as enterprise protection, email fraud defense, and email continuity offerings; advanced threat products, including solutions to protect organizations across threat vectors, including email, social media, mobile apps, and SaaS applications; a suite of security solutions comprising data loss prevention, encryption, data discover for data at rest, enterprise archive, eDiscovery analytics, and supervision; and digital risk protection suite that enables organizations to look beyond their borders for threats targeting their customers across email phishing, malicious Web domains, fraudulent mobile apps, and fraudulent social media accounts. In addition, it offers solutions that enable secure business-to-business and business-to-consumer communications; email encryption services that encrypt sensitive emails and deliver them to PC or mobile device; file-transfer solutions for end-users to share various forms of documents and other content; security optimized cloud architecture solutions. The company serves aerospace and defense, education, financial services, government, healthcare, manufacturing, and retail sectors. Proofpoint, Inc. was founded in 2002 and is headquartered in Sunnyvale, California.
RingCentral, Inc. provides software-as-a-service solutions for business communications and collaboration primarily in the United States. The company's products include RingCentral Office, a multi-tenant, multi-location, and enterprise-grade communications and collaboration solution that enables employees to communicate through voice, text, team messaging and collaboration, and HD video and Web conferencing through smartphones, tablets, PCs, and desk phones for businesses, which require a communications solution; RingCentral Professional, an inbound call routing subscription with additional text and fax capabilities primarily for smaller businesses; and RingCentral Fax solution that offers Internet fax capabilities, which allow businesses to send and receive fax documents without the need for a fax machine. Its products also comprise RingCentral Contact Center that provides a cloud based contact center solution, which delivers omni-channel capabilities; and RingCentral Glip, a team messaging and collaboration solution that allows a range of teams to stay connected through various modes of communication through an integration with RingCentral Office. RingCentral, Inc. serves a range of industries, including financial services, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others. The company sells its products through a network of direct sales representatives, as well as sales agents and channel partners. RingCentral, Inc. was founded in 1999 and is headquartered in Belmont, California.
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