Head-To-Head Comparison: Support.com (NASDAQ:SPRT) & Proofpoint (PFPT)

Support.com (NASDAQ:SPRT) and Proofpoint (NASDAQ:PFPT) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Institutional & Insider Ownership

41.5% of Support.com shares are held by institutional investors. Comparatively, 95.9% of Proofpoint shares are held by institutional investors. 17.2% of Support.com shares are held by company insiders. Comparatively, 3.4% of Proofpoint shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Support.com has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Proofpoint has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Support.com and Proofpoint, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Support.com 0 0 0 0 N/A
Proofpoint 0 2 20 0 2.91

Proofpoint has a consensus price target of $126.33, indicating a potential upside of 2.79%. Given Proofpoint’s higher possible upside, analysts plainly believe Proofpoint is more favorable than Support.com.

Valuation & Earnings

This table compares Support.com and Proofpoint’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Support.com $69.55 million 0.60 -$9.10 million N/A N/A
Proofpoint $716.99 million 9.49 -$103.75 million ($1.15) -106.87

Support.com has higher earnings, but lower revenue than Proofpoint.

Profitability

This table compares Support.com and Proofpoint’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Support.com -13.09% 2.85% 2.33%
Proofpoint -14.47% -12.20% -4.37%

Support.com Company Profile

Support.com, Inc. provides customer support services, end user software, and cloud-based software primarily in the United States. The company offers turnkey, outsourced support services for service providers, retailers, consumer electronics brands and warranty providers, Internet of Things solution providers, and technology companies. Its customer support services programs include pre-purchased concierge advice, device set-up, trouble shooting, security and support, virus and malware removal, wireless network set-up, and home security and automation system support designed for consumer, and small and medium business markets. The company also provides Support.com Cloud, a software-as-a-service solution for companies to optimize support interactions with their customers using their own or third party support personnel, as well as enables companies to resolve complex technology issues for their customers, boost agent productivity, providing ease of use for customer self-service, and improve the customer experience. In addition, it offers end-user software products, including SUPERAntiSpyware for malware protection and removal; and Cosmos for personal computer, smartphone, and tablet maintenance and optimization. The company provides its Support.com Cloud and end-user software products through direct sales channel; and technology support services through partners. Support.com, Inc. was founded in 1997 and is headquartered in Sunnyvale, California.

Proofpoint Company Profile

Proofpoint, Inc. operates as a security-as-a-service 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 integrated email security, advanced threat, information protection and archiving, and digital risk protection product services. 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; and extensible security-as-a-service platform. 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.

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