Experian (OTCMKTS:EXPGY) vs. Red Violet (NASDAQ:RDVT) Financial Analysis

Red Violet (NASDAQ:RDVT) and Experian (OTCMKTS:EXPGY) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for Red Violet and Experian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	2	2	0	2.50
Experian	0	0	1	1	3.50

Red Violet presently has a consensus price target of $77.00, indicating a potential upside of 10.35%. Given Red Violet’s higher possible upside, analysts plainly believe Red Violet is more favorable than Experian.

Valuation and Earnings

This table compares Red Violet and Experian”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	$90.25 million	12.41	$13.15 million	$1.12	62.30
Experian	$8.45 billion	4.13	$1.50 billion	N/A	N/A

Experian has higher revenue and earnings than Red Violet.

Institutional & Insider Ownership

63.6% of Red Violet shares are owned by institutional investors. Comparatively, 0.3% of Experian shares are owned by institutional investors. 8.9% of Red Violet shares are owned by insiders. Comparatively, 0.1% of Experian shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Red Violet	16.54%	16.12%	14.77%
Experian	N/A	N/A	N/A

Volatility & Risk

Red Violet has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Experian has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Summary

Red Violet beats Experian on 9 of the 13 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 Experian

Experian plc, together with its subsidiaries, operates as a technology company in North America, Latin America, the United Kingdom, Ireland, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segments, Business-to-Business and Consumer Services. The company collects, sorts, aggregates, and transforms data from various sources to provide a range of data-driven services. It also owns, create, and develops analytics, predictive tools, sophisticated software, and platforms; credit risk, fraud prevention, identity management, customer service and engagement, account processing, and account management services; data analysis, and research and development services. In addition, the company provides credit education, free access to Experian credit reports and scores, and online educational tools. It serves its customers in financial service, direct-to-consumer, health, retail, automotive, software and professional services, telecoms and utility, insurance, media and technology, and other industries, as well as government and public sectors. The company was formerly known as Experian Group Limited and changed its name to Experian plc in July 2008. Experian plc was founded in 1826 and is headquartered in Dublin, Ireland.