Comparing Guidance Software (GUID) and Professional Diversity Network (NASDAQ:IPDN)

Guidance Software (NASDAQ: GUID) and Professional Diversity Network (NASDAQ:IPDN) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Institutional & Insider Ownership

51.8% of Guidance Software shares are owned by institutional investors. Comparatively, 4.6% of Professional Diversity Network shares are owned by institutional investors. 38.1% of Guidance Software shares are owned by company insiders. Comparatively, 19.0% of Professional Diversity Network shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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
Guidance Software -4.73% -559.09% -6.73%
Professional Diversity Network -86.95% -37.27% -25.12%

Analyst Ratings

This is a summary of recent ratings and price targets for Guidance Software and Professional Diversity Network, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guidance Software 0 3 2 0 2.40
Professional Diversity Network 0 0 0 0 N/A

Guidance Software currently has a consensus target price of $7.53, suggesting a potential upside of 6.44%. Given Guidance Software’s higher possible upside, equities analysts clearly believe Guidance Software is more favorable than Professional Diversity Network.

Earnings and Valuation

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
Guidance Software N/A N/A N/A ($0.24) -29.46
Professional Diversity Network $26.23 million 0.59 -$4.10 million ($4.54) -0.87

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.

Summary

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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