Digerati Technologies (OTCMKTS:DTGI) and Proofpoint (NASDAQ:PFPT) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
Risk & Volatility
Digerati Technologies has a beta of 2.72, indicating that its stock price is 172% more volatile than the S&P 500. Comparatively, Proofpoint has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Digerati Technologies and Proofpoint, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Proofpoint has a consensus target price of $139.91, indicating a potential upside of 17.14%. Given Proofpoint’s higher probable upside, analysts plainly believe Proofpoint is more favorable than Digerati Technologies.
Institutional & Insider Ownership
94.0% of Proofpoint shares are owned by institutional investors. 8.0% of Digerati Technologies shares are owned by company insiders. Comparatively, 2.9% of Proofpoint shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Digerati Technologies and Proofpoint’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digerati Technologies||$2.00 million||0.63||-$3.16 million||N/A||N/A|
|Proofpoint||$716.99 million||9.34||-$103.75 million||($1.15)||-103.86|
Digerati Technologies has higher earnings, but lower revenue than Proofpoint.
This table compares Digerati Technologies and Proofpoint’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Proofpoint beats Digerati Technologies on 7 of the 11 factors compared between the two stocks.
Digerati Technologies Company Profile
Digerati Technologies, Inc. is a holding company, which through its subsidiaries, engages in the provision of cloud telephony services. Its services include fully hosted IP/PBX, mobile applications, voice over Internet protocol (VoIP) transport, SIP trunking, and customized VoIP services. It also offers oilfield services. The company was founded by Arthur L. Smith on December 17, 1993 and is headquartered in San Antonio, TX.
Proofpoint Company Profile
Proofpoint, Inc. operates as a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide. It offers protection against advanced and targeted threats, including malicious attachments, polymorphic threats, zero-day exploits, user-transparent ‘drive-by' downloads, malicious Web links, hybrid threats, malware free attacks, and other penetration tactics. The company also provides integrated email security, advanced threat, information protection and archiving, and digital risk protection product services. In addition, it offers solutions that enable secure business-to-business and business-to-consumer communications; email encryption services that encrypt sensitive emails and deliver them to PC or mobile device; file-transfer solutions for end-users to share various forms of documents and other content; security optimized cloud architecture solutions; and extensible security-as-a-service platform. The company serves aerospace and defense, education, financial services, government, healthcare, manufacturing, and retail sectors. Proofpoint, Inc. was founded in 2002 and is headquartered in Sunnyvale, California.
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