Contrasting Red Violet (NASDAQ:RDVT) and Cyberark Software (NASDAQ:CYBR)

Red Violet (NASDAQ:RDVT) and Cyberark Software (NASDAQ:CYBR) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for Red Violet and Cyberark Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red Violet 0 0 0 0 N/A
Cyberark Software 0 3 16 0 2.84

Cyberark Software has a consensus price target of $126.37, indicating a potential upside of 21.88%. Given Cyberark Software’s higher probable upside, analysts plainly believe Cyberark Software is more favorable than Red Violet.

Institutional and Insider Ownership

15.7% of Red Violet shares are owned by institutional investors. Comparatively, 74.7% of Cyberark Software shares are owned by institutional investors. 4.3% of Red Violet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Red Violet and Cyberark Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Red Violet -38.64% -16.91% -14.83%
Cyberark Software 15.23% 13.47% 9.23%

Risk & Volatility

Red Violet has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500. Comparatively, Cyberark Software has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500.

Valuation & Earnings

This table compares Red Violet and Cyberark Software’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Red Violet $16.30 million 9.02 -$6.87 million N/A N/A
Cyberark Software $343.20 million 11.40 $47.07 million $1.43 72.50

Cyberark Software has higher revenue and earnings than Red Violet.

Summary

Cyberark Software beats Red Violet on 10 of the 11 factors compared between the two stocks.

Red Violet Company Profile

Red Violet, Inc., a software and services company, specializes in big data analysis providing cloud-based mission-critical information solutions to enterprises in various industries in the United States. Its proprietary platform includes CORE, a cloud-based technology platform, which serves various industries within risk management. The company serves various industries, including law enforcement, government, financial services, insurance, and corporate risk for identity verification, risk assessment, fraud detection, and compliance. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective clients, distributors, resellers, strategic partners, and installed base of current clients, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.

Cyberark Software Company Profile

CyberArk Software Ltd., together with its subsidiaries, provides software-based security solutions and services for organizations to safeguard and monitor their privileged accounts. The company's solutions include Core Privileged Access Security for risk-based credential security and session management with add-on options for least privilege server and domain controller protection; Application Access Manager for secrets management for applications, tools, containers, and DevOps; and Endpoint Privilege Manager for least privilege and credential theft protection for workstations. It also provides Sensitive Information Management solution; and software maintenance and support, and professional services. The company offers its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries, as well as government agencies through direct sales force, as well as distributors, systems integrators, value-added resellers, and managed security service providers. It operates in the United States, Europe, the Middle East, Africa, the Asia Pacific, Latin America, and Canada. CyberArk Software Ltd. was founded in 1999 and is headquartered in Petach Tikva, Israel.

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