Head-To-Head Review: AvePoint (NASDAQ:AVPT) vs. Red Violet (NASDAQ:RDVT)

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

Valuation & Earnings

This table compares Red Violet and AvePoint”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	$70.69 million	6.98	$13.53 million	$0.36	99.31
AvePoint	$315.92 million	10.13	-$21.50 million	($0.05)	-342.80

Red Violet has higher earnings, but lower revenue 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.

Volatility and Risk

Red Violet has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, AvePoint has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Institutional & Insider Ownership

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

Profitability

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

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

Analyst Ratings

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

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

Red Violet currently has a consensus target price of $25.00, indicating a potential downside of 30.07%. AvePoint has a consensus target price of $13.20, indicating a potential downside of 22.99%. Given AvePoint’s higher probable upside, analysts clearly believe AvePoint is more favorable than Red Violet.

Summary

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

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.

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.