Contrasting Proofpoint (PFPT) and Sphere 3D (ANY)

Proofpoint (NASDAQ: PFPT) and Sphere 3D (NASDAQ:ANY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Volatility and Risk

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Proofpoint has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Sphere 3D has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500.

Valuation & Earnings

This table compares Proofpoint and Sphere 3D’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Proofpoint $515.29 million 11.50 -$84.33 million ($1.31) -89.46
Sphere 3D $81.52 million 0.10 -$26.18 million ($1.32) -0.69

Sphere 3D has lower revenue, but higher earnings than Proofpoint. Proofpoint is trading at a lower price-to-earnings ratio than Sphere 3D, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

14.8% of Sphere 3D shares are owned by institutional investors. 6.0% of Proofpoint shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Proofpoint and Sphere 3D’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Proofpoint -16.37% -54.09% -5.19%
Sphere 3D -32.12% -60.52% -9.90%

Analyst Ratings

This is a breakdown of current ratings and price targets for Proofpoint and Sphere 3D, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Proofpoint 0 3 22 0 2.88
Sphere 3D 0 0 0 0 N/A

Proofpoint currently has a consensus target price of $113.55, indicating a potential downside of 3.11%. Given Proofpoint’s higher probable upside, research analysts plainly believe Proofpoint is more favorable than Sphere 3D.

Summary

Proofpoint beats Sphere 3D on 9 of the 13 factors compared between the two stocks.

Proofpoint Company Profile

Proofpoint, Inc. is a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive and govern their sensitive data. The Company’s security-as-a-service platform consists of an integrated suite of on-demand data protection solutions, including threat protection, incident response, regulatory compliance, archiving, governance, eDiscovery and secure communication. The Company’s solutions are built on a cloud-based platform. The Company provides a multi-tiered security-as-a-service platform, including solutions, platform technologies and infrastructure. Its product families include Email Security, Proofpoint Advanced Threat Protection, Proofpoint Information Protection and Archiving, and Proofpoint Digital Risk Protection. The Company’s platform services include Threat detection, Threat intel extraction, Nexus threat graph, Real-time detection, Information classification and Intelligent policy.

Sphere 3D Company Profile

Sphere 3D Corp. provides virtualization technologies and data management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It enables organizations to deploy a combination of public, private, or hybrid cloud strategies through containerized applications, virtual desktops, virtual storage, and physical hyper-converged platforms. The company offers G-Series Appliance and G-Series Cloud applications; virtual desktop management software for managing virtual desktop pools on its V3 hyper-converged appliances for virtualized desktop infrastructures; virtual desktop infrastructure appliances; RDX removable disk solutions, which use public cloud providers comprising Microsoft and Amazon for data protection; and SnapServer network attached storage solution, a platform for primary or nearline storage for integration with Windows, UNIX/Linux, and Macintosh environments. It also provides SnapScale clustered network attached storage solutions, which are clustered network attached storage (NAS) solutions that enable organizations with rapid or unpredictable data growth to scale capacity and performance; NEO tape-based backup and long-term archive solutions, including tape libraries, autoloaders, and drives, as well as LTFS solutions; and LTO tape drives and media products. The company markets its products under the Glassware 2.0, NEO, RDX, SnapCLOUD, SnapServer, SnapSync, and V3 brand names. The company sells its products through its distributor and reseller network to small and medium enterprises, small and medium businesses, and distributed enterprises. Sphere 3D Corp. was incorporated in 2007 and is headquartered in Mississauga, Canada.

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