Procera Networks (NASDAQ:PKT) vs. Endurance International Group (EIGI) Critical Survey

Endurance International Group (NASDAQ: EIGI) and Procera Networks (NASDAQ:PKT) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Endurance International Group and Procera Networks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Endurance International Group 2 2 1 0 1.80
Procera Networks 0 0 0 0 N/A

Endurance International Group presently has a consensus target price of $8.70, indicating a potential downside of 1.14%. Given Endurance International Group’s higher probable upside, equities analysts plainly believe Endurance International Group is more favorable than Procera Networks.

Volatility & Risk

Endurance International Group has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500. Comparatively, Procera Networks has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Endurance International Group and Procera Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Endurance International Group -12.74% -161.36% -5.51%
Procera Networks -16.09% -10.44% -8.57%

Institutional & Insider Ownership

86.4% of Endurance International Group shares are held by institutional investors. 58.2% of Endurance International Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Endurance International Group and Procera Networks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Endurance International Group $1.11 billion 1.14 -$72.83 million ($1.10) -8.00
Procera Networks N/A N/A N/A ($1.08) -10.65

Procera Networks has lower revenue, but higher earnings than Endurance International Group. Procera Networks is trading at a lower price-to-earnings ratio than Endurance International Group, indicating that it is currently the more affordable of the two stocks.

Summary

Endurance International Group beats Procera Networks on 9 of the 11 factors compared between the two stocks.

Endurance International Group Company Profile

Endurance International Group Holdings, Inc. (Endurance) is a provider of cloud-based platform solutions designed to help small and medium-sized businesses (SMBs) succeed online. The Company operates through two segments: Web Presence and Email Marketing. The Company’s Web presence segment consists of Web hosting, domains and the related products and services. Its e-mail marketing segment consists of the products and services offered by Constant Contact, principally e-mail marketing, including event marketing, survey tools and SinglePlatform. The Company’s products focuses on Web hosting and other Web presence solutions, such as domains, and it also offers security, site backup, domains, search engine optimization (SEO) and search engine marketing (SEM), Google Adwords, mobile solutions, social media enablement, Website analytics, e-mail marketing and productivity and e-commerce tools, among others. It conducts operations in the United States, Brazil, India, and the Netherlands.

Procera Networks Company Profile

Procera Networks, Inc. is a provider of subscriber experience assurance (SEA) solutions designed for network operators around the world. The Company’s PacketLogic solutions enable network operators to gain insights, make decisions, and take actions to ensure a quality experience for Internet connected devices. Network operators deploy its technology to gain insights on their subscribers and networks, make decisions on service packaging and then deliver those solutions to subscribers connected to their network. Its network operator customers include service provider customers and enterprises. Its service provider customers include mobile service providers and broadband service providers, which include cable multiple system operators (MSOs), telecommunications companies, Wi-Fi network operators, and Internet Service Providers (ISPs). Its enterprise customers include educational institutions, commercial enterprises and government and municipal agencies.

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