Hortonworks (HDP) vs. Benefitfocus (BNFT) Head to Head Comparison

Hortonworks (NASDAQ: HDP) and Benefitfocus (NASDAQ:BNFT) are both small-cap enterprise software 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.

Profitability

This table compares Hortonworks and Benefitfocus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hortonworks -89.35% -765.37% -94.91%
Benefitfocus -10.28% N/A -14.48%

Earnings and Valuation

This table compares Hortonworks and Benefitfocus’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Hortonworks $184.46 million 7.44 -$251.68 million ($3.37) -5.78
Benefitfocus $233.34 million 3.56 -$40.05 million ($0.85) -31.24

Benefitfocus has higher revenue and earnings than Hortonworks. Benefitfocus is trading at a lower price-to-earnings ratio than Hortonworks, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hortonworks and Benefitfocus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hortonworks 0 3 11 0 2.79
Benefitfocus 0 3 5 0 2.63

Hortonworks currently has a consensus target price of $20.42, indicating a potential upside of 4.86%. Benefitfocus has a consensus target price of $35.00, indicating a potential upside of 31.83%. Given Benefitfocus’ higher probable upside, analysts plainly believe Benefitfocus is more favorable than Hortonworks.

Institutional & Insider Ownership

48.0% of Hortonworks shares are owned by institutional investors. Comparatively, 83.5% of Benefitfocus shares are owned by institutional investors. 22.5% of Hortonworks shares are owned by company insiders. Comparatively, 40.1% of Benefitfocus 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.

Summary

Benefitfocus beats Hortonworks on 9 of the 12 factors compared between the two stocks.

About Hortonworks

Hortonworks, Inc. is a provider and distributor of enterprise-scale data management software platforms. The Company’s product offerings include Hortonworks Data Platform (HDP), Hortonworks Sandbox and Hortonworks DataFlow Platform (HDF). It provides support subscription offerings and related professional services for its enterprise-scale Connected Data Platforms, such as HDP and HDF. Its Data at Rest solution, the HDP, is an enterprise-scale data management platform built entirely on open source software, including Apache Hadoop. HDP combines computer servers with local storage and open source software technology to create a distributed compute and storage platform for data sets that is secure and scalable over petabytes of data within thousands of servers or nodes. Its Data in Motion solution, the HDF, is an enterprise-scale data ingest platform built entirely on open source software, including Apache NiFi.

About Benefitfocus

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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