Financial Review: Imperva (IMPV) versus Its Peers

Imperva (NASDAQ: IMPV) is one of 187 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare Imperva to similar businesses based on the strength of its dividends, analyst recommendations, valuation, profitability, risk, earnings and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Imperva and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Imperva 1 6 8 0 2.47
Imperva Competitors 731 4677 7443 169 2.54

Imperva currently has a consensus price target of $51.91, indicating a potential upside of 24.63%. As a group, “IT Services & Consulting” companies have a potential upside of 2.66%. Given Imperva’s higher probable upside, research analysts plainly believe Imperva is more favorable than its rivals.

Institutional and Insider Ownership

96.9% of Imperva shares are held by institutional investors. Comparatively, 61.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 1.9% of Imperva shares are held by insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Imperva and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Imperva 3.04% -8.52% -4.99%
Imperva Competitors -20.17% -269.41% -4.59%

Risk & Volatility

Imperva has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, Imperva’s rivals have a beta of 1.16, suggesting that their average stock price is 16% more volatile than the S&P 500.

Earnings and Valuation

This table compares Imperva and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Imperva $264.45 million -$70.27 million 154.26
Imperva Competitors $2.81 billion $293.37 million 360.20

Imperva’s rivals have higher revenue and earnings than Imperva. Imperva is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Imperva rivals beat Imperva on 7 of the 12 factors compared.

About Imperva

Imperva, Inc. provides cyber-security solutions that protect business-critical data and applications whether in the cloud or on premises. The Company is engaged in the development, marketing, sales, service and support of cyber-security solutions. The Company’s products include its Imperva SecureSphere Paltform, Imperva CounterBreach and Imperva Camouflage for enterprise data centers, and Imperva Incapsula offering for cloud-based security services. Its Imperva SecureSphere provides database, file and Web application security across various physical and virtual systems in data centers, including in private, public and hybrid cloud computing environments. Its Imperva Incapsula product line provides cloud-based Website security, denial of service protection and performance solutions. Its Imperva Camouflage creates realistic, functional data for development, testing, and training by disguising sensitive information, while maintaining the characteristics of the original data.

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