Hortonworks (HDP) versus Shotspotter (SSTI) Critical Comparison

Hortonworks (NASDAQ: HDP) and Shotspotter (NASDAQ:SSTI) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares Hortonworks and Shotspotter’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hortonworks -78.11% N/A -94.45%
Shotspotter N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and target prices for Hortonworks and Shotspotter, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hortonworks 0 4 9 0 2.69
Shotspotter 0 0 3 0 3.00

Hortonworks presently has a consensus target price of $22.00, suggesting a potential upside of 19.83%. Shotspotter has a consensus target price of $24.33, suggesting a potential upside of 26.74%. Given Shotspotter’s stronger consensus rating and higher probable upside, analysts clearly believe Shotspotter is more favorable than Hortonworks.

Valuation and Earnings

This table compares Hortonworks and Shotspotter’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hortonworks $261.81 million 5.09 -$204.51 million ($3.10) -5.92
Shotspotter $15.50 million 11.95 -$6.86 million N/A N/A

Shotspotter has lower revenue, but higher earnings than Hortonworks.

Insider and Institutional Ownership

57.0% of Hortonworks shares are owned by institutional investors. Comparatively, 41.5% of Shotspotter shares are owned by institutional investors. 22.5% of Hortonworks shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Shotspotter beats Hortonworks on 6 of the 10 factors compared between the two stocks.

Hortonworks Company Profile

Hortonworks, Inc. is a provider and distributor of enterprise-scale data management software platforms. The Company’s product offerings include Hortonworks Data Platform (HDP), Hortonworks Sandbox and Hortonworks DataFlow Platform (HDF). It provides support subscription offerings and related professional services for its enterprise-scale Connected Data Platforms, such as HDP and HDF. Its Data at Rest solution, the HDP, is an enterprise-scale data management platform built entirely on open source software, including Apache Hadoop. HDP combines computer servers with local storage and open source software technology to create a distributed compute and storage platform for data sets that is secure and scalable over petabytes of data within thousands of servers or nodes. Its Data in Motion solution, the HDF, is an enterprise-scale data ingest platform built entirely on open source software, including Apache NiFi.

Shotspotter Company Profile

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.

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