Guidance Software (NASDAQ: GUID) and Professional Diversity Network (NASDAQ:IPDN) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
51.8% of Guidance Software shares are held by institutional investors. Comparatively, 4.6% of Professional Diversity Network shares are held by institutional investors. 38.1% of Guidance Software shares are held by company insiders. Comparatively, 19.0% of Professional Diversity Network shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Guidance Software and Professional Diversity Network’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Professional Diversity Network||$26.23 million||0.56||-$4.10 million||($4.54)||-0.82|
Guidance Software has higher earnings, but lower revenue than Professional Diversity Network. Guidance Software is trading at a lower price-to-earnings ratio than Professional Diversity Network, indicating that it is currently the more affordable of the two stocks.
This table compares Guidance Software and Professional Diversity Network’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Professional Diversity Network||-86.95%||-37.27%||-25.12%|
This is a summary of recent ratings and target prices for Guidance Software and Professional Diversity Network, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Professional Diversity Network||0||0||0||0||N/A|
Guidance Software currently has a consensus target price of $8.02, suggesting a potential upside of 13.44%. Given Guidance Software’s higher possible upside, equities research analysts plainly believe Guidance Software is more favorable than Professional Diversity Network.
Guidance Software beats Professional Diversity Network on 7 of the 9 factors compared between the two stocks.
About Guidance Software
Guidance Software, Inc. is a technology company. The Company is a provider of endpoint investigation solutions for cybersecurity analytics, security incident response, e-discovery, data privacy and forensic analysis. The Company has five segments, which include Products, Subscription, Professional services, Training and Maintenance. The Company’s Products segment includes EnCase, EnCase Endpoint Security, EnCase eDiscovery, EnCase Forensic, EnCase Portable, Premium License Support Program and hardware sales. Its Subscription segment includes subscription services for cloud-based document review and production software. Its Professional services segment performs consulting services and implementations. Its Training segment provides training classes, by which the Company trains its customers to use its software products. Its maintenance segment provides software updates, telephone and e-mail support.
About Professional Diversity Network
Professional Diversity Network, Inc. is an operator of professional networks with a focus on diversity. The Company serves various communities, including Women, Hispanic-Americans, African-Americans, Asian-Americans, Disabled, Military Professionals, and Lesbian, Gay, Bisexual and Transgender (LGBT). The Company’s segments include Professional Diversity Network (PDN Network), which includes online professional networking communities with career resources for the needs of various diverse cultural groups; National Association of Professional Women (NAPW Network), a women-only professional networking organization, and Noble Voice operations (Noble Voice), a career consultation and lead generation service. The Noble Voice call centers qualify callers for real-time job placement. The PDN Network consists of various online professional networking communities dedicated to serving diverse professionals in the United States and employers seeking to hire diverse talent.
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