Critical Survey: Red Violet (NASDAQ:RDVT) and AvePoint (NASDAQ:AVPT)

AvePoint (NASDAQ:AVPT) and Red Violet (NASDAQ:RDVT) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Earnings and Valuation

This table compares AvePoint and Red Violet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvePoint	$315.92 million	10.02	-$21.50 million	($0.05)	-339.00
Red Violet	$70.69 million	7.14	$13.53 million	$0.36	101.69

Red Violet has lower revenue, but higher earnings than AvePoint. AvePoint is trading at a lower price-to-earnings ratio than Red Violet, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AvePoint	-2.36%	-3.16%	-1.55%
Red Violet	7.17%	6.80%	6.28%

Analyst Ratings

This is a breakdown of recent ratings for AvePoint and Red Violet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvePoint	0	2	3	0	2.60
Red Violet	0	0	1	0	3.00

AvePoint presently has a consensus price target of $13.20, suggesting a potential downside of 22.12%. Red Violet has a consensus price target of $25.00, suggesting a potential downside of 31.71%. Given AvePoint’s higher possible upside, research analysts plainly believe AvePoint is more favorable than Red Violet.

Volatility & Risk

AvePoint has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Red Violet has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Insider & Institutional Ownership

44.5% of AvePoint shares are owned by institutional investors. Comparatively, 63.6% of Red Violet shares are owned by institutional investors. 27.8% of AvePoint shares are owned by insiders. Comparatively, 9.5% of Red Violet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Red Violet beats AvePoint on 9 of the 14 factors compared between the two stocks.

About AvePoint

AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.

About Red Violet

Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, fraud detection and prevention, customer acquisition, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, telecommunication companies, law enforcement and government agencies, collections, law, corporate security, and investigative firms. 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 customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.