Head-To-Head Contrast: PROS Holdings (NYSE:PRO) versus Benefitfocus (BNFT)
PROS Holdings (NYSE: PRO) and Benefitfocus (NASDAQ:BNFT) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitabiliy, earnings, risk, analyst recommendations, institutional ownership and dividends.
Valuation and Earnings
This table compares PROS Holdings and Benefitfocus’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PROS Holdings||$155.48 million||5.44||-$56.02 million||($2.40)||-11.09|
|Benefitfocus||$242.71 million||3.52||-$13.15 million||($0.92)||-29.89|
Benefitfocus has higher revenue and earnings than PROS Holdings. Benefitfocus is trading at a lower price-to-earnings ratio than PROS Holdings, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
89.2% of PROS Holdings shares are owned by institutional investors. Comparatively, 83.3% of Benefitfocus shares are owned by institutional investors. 17.2% of PROS Holdings shares are owned by insiders. Comparatively, 40.1% of Benefitfocus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares PROS Holdings and Benefitfocus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for PROS Holdings and Benefitfocus, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PROS Holdings currently has a consensus price target of $31.20, indicating a potential upside of 17.25%. Benefitfocus has a consensus price target of $40.00, indicating a potential upside of 45.45%. Given Benefitfocus’ higher possible upside, analysts plainly believe Benefitfocus is more favorable than PROS Holdings.
Risk and Volatility
PROS Holdings has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Benefitfocus has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Benefitfocus beats PROS Holdings on 9 of the 13 factors compared between the two stocks.
PROS Holdings Company Profile
PROS Holdings, Inc. (PROS) is a provider of revenue and profit realization solutions. The Company provides its solutions to enterprises across the manufacturing, distribution, services, and travel industries, including automotive and industrial, business-to-business (B2B) services, cargo, chemicals and energy, consumer goods, insurance, food and beverage, healthcare, high tech and travel. The Company offers its solutions through a software-as-a-service (SaaS) delivery model, as well as on a perpetual or term license basis. The Company also provides professional services to implement its software applications, as well as business consulting. In addition, the Company provides product maintenance and support to its customers through which they receive unspecified upgrades, maintenance releases and bug fixes during the term of the support period on a when-and-if-available basis. Its cloud solutions for revenue and profit realization include SellingPRO, PricingPRO and RevenuePRO.
Benefitfocus Company Profile
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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