Red Violet (RDVT) Competitors

Red Violet (NASDAQ:RDVT) and Sprout Social (NASDAQ:SPT) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation, risk, community ranking and media sentiment.

Is RDVT or SPT more profitable?

Red Violet has a net margin of 7.17% compared to Sprout Social's net margin of -17.24%. Red Violet's return on equity of 6.80% beat Sprout Social's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Red Violet	7.17%	6.80%	6.28%
Sprout Social	-17.24%	-40.94%	-15.70%

Do analysts recommend RDVT or SPT?

Red Violet presently has a consensus target price of $25.00, indicating a potential downside of 33.88%. Sprout Social has a consensus target price of $45.46, indicating a potential upside of 40.10%. Given Sprout Social's higher probable upside, analysts plainly believe Sprout Social is more favorable than Red Violet.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00
Sprout Social	1 Sell rating(s)	7 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.40

Do insiders & institutionals have more ownership in RDVT or SPT?

63.6% of Red Violet shares are owned by institutional investors. 9.5% of Red Violet shares are owned by insiders. Comparatively, 11.0% of Sprout Social shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Which has more risk and volatility, RDVT or SPT?

Red Violet has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Sprout Social has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Does the MarketBeat Community favor RDVT or SPT?

Sprout Social received 22 more outperform votes than Red Violet when rated by MarketBeat users. However, 62.26% of users gave Red Violet an outperform vote while only 61.11% of users gave Sprout Social an outperform vote.

Company	Underperform	Outperform
Red Violet	Outperform Votes 66 62.26%	Underperform Votes 40 37.74%
Sprout Social	Outperform Votes 88 61.11%	Underperform Votes 56 38.89%

Which has better valuation & earnings, RDVT or SPT?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$70.69M	7.38	$13.53M	$0.36	105.03
Sprout Social	$392.40M	4.75	-$66.43M	-$1.20	-27.04

Does the media prefer RDVT or SPT?

In the previous week, Sprout Social had 5 more articles in the media than Red Violet. MarketBeat recorded 7 mentions for Sprout Social and 2 mentions for Red Violet. Sprout Social's average media sentiment score of 0.97 beat Red Violet's score of 0.33 indicating that Sprout Social is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Red Violet	0 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Sprout Social	3 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Red Violet beats Sprout Social on 11 of the 18 factors compared between the two stocks.