Analyzing ShotSpotter (SSTI) and Benefitfocus (BNFT)

ShotSpotter (NASDAQ: SSTI) and Benefitfocus (NASDAQ:BNFT) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Earnings & Valuation

This table compares ShotSpotter and Benefitfocus’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ShotSpotter $15.50 million 8.40 -$6.86 million N/A N/A
Benefitfocus $233.34 million 3.39 -$40.05 million ($0.84) -30.12

ShotSpotter has higher earnings, but lower revenue than Benefitfocus.

Profitability

This table compares ShotSpotter and Benefitfocus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ShotSpotter N/A N/A N/A
Benefitfocus -10.28% N/A -14.48%

Insider & Institutional Ownership

24.4% of ShotSpotter shares are held by institutional investors. Comparatively, 85.8% of Benefitfocus shares are held by institutional investors. 40.1% of Benefitfocus shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for ShotSpotter and Benefitfocus, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ShotSpotter 0 0 3 0 3.00
Benefitfocus 0 3 5 0 2.63

ShotSpotter presently has a consensus target price of $21.00, suggesting a potential upside of 55.56%. Benefitfocus has a consensus target price of $35.00, suggesting a potential upside of 38.34%. Given ShotSpotter’s stronger consensus rating and higher probable upside, research analysts clearly believe ShotSpotter is more favorable than Benefitfocus.

Summary

ShotSpotter beats Benefitfocus on 6 of the 10 factors compared between the two stocks.

About ShotSpotter

ShotSpotter, Inc. is engaged in designing and delivering gunfire alert and analysis solutions. The Company offers its software solutions on a SaaS-based subscription model. It has one operating segment with one business activity, providing gunshot detection systems. Its safety solutions include ShotSpotter Flex, ShotSpotter (SST) SecureCampus and ShotSpotter SiteSecure. ShotSpotter Flex is an outdoor public safety solution, serves cities and municipalities seeking to identify, locate and deter persistent a real-time gunshot detection system into their policing systems. SST SecureCampus is integrates its indoor and outdoor solutions in order to help the law enforcement and security personnel serving universities, colleges and other educational institutions. ShotSpotter SiteSecure is integrates its indoor and outdoor solutions for customers such as corporations trying to safeguard their facilities and public agencies focused on protecting critical infrastructure.

About Benefitfocus

Benefitfocus, Inc. (Benefitfocus) is a provider of cloud-based benefits management platform for consumers, employers, insurance carriers and brokers. The Benefitfocus Platform allows how organizations and individuals shop for, enroll in, manage and exchange benefits. The Company operates through two business segments: Employer, which derives its revenue from customers that use the Company’s services for the provision of benefits to their employees, and administrators acting on behalf of employers, Carrier, which derives its revenue from insurance companies that provide coverage at their own risk. Its solutions support benefits plans, including healthcare, dental, life and disability insurance, and voluntary benefits plans, such as critical illness, supplemental income and wellness programs. It provides a multi-tenant cloud-based benefits management platform to the employer and carrier markets.

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