Rapid7 (NASDAQ:RPD – Get Free Report) and GitLab (NASDAQ:GTLB – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Profitability
This table compares Rapid7 and GitLab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rapid7 | 2.61% | 34.35% | 2.78% |
| GitLab | -5.86% | -1.73% | -1.05% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Rapid7 and GitLab, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rapid7 | 3 | 17 | 2 | 0 | 1.95 |
| GitLab | 4 | 18 | 7 | 1 | 2.17 |
Institutional & Insider Ownership
95.7% of Rapid7 shares are held by institutional investors. Comparatively, 95.0% of GitLab shares are held by institutional investors. 2.4% of Rapid7 shares are held by insiders. Comparatively, 10.6% of GitLab shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Rapid7 and GitLab”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rapid7 | $859.79 million | 0.58 | $23.38 million | $0.35 | 21.26 |
| GitLab | $955.22 million | 4.97 | -$55.96 million | ($0.35) | -79.80 |
Rapid7 has higher earnings, but lower revenue than GitLab. GitLab is trading at a lower price-to-earnings ratio than Rapid7, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Rapid7 has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, GitLab has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Summary
Rapid7 beats GitLab on 8 of the 15 factors compared between the two stocks.
About Rapid7
Rapid7, Inc. provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions. It also offers various platforms, including Rapid7 managed threat complete consisting of managed detection response that delivers end-to-end threat detection and response, as well as offloads day-to-day vulnerability management operations. In addition, it provides Rapid7 threat complete consisting of InsightIDR, a security information and event management, and extended detection and response solution; and InsightVM, a vulnerability management solution that provides visibility across on-premise and remote endpoints for security teams to evaluate the business risks, and configurations, and share with their IT counterparts for remediation. Further, the company offers Rapid7 cloud risk complete, which includes InsightCloudSec, a cloud risk and compliance management solution; and InsightAppSec, a dynamic application security testing tool. It also provides professional services. It serves a range of industries, including business services, pharmaceuticals, technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, travel and transportation, government, online services, telecommunications, and professional services. The company was incorporated in 2000 and is headquartered in Boston, Massachusetts.
About GitLab
GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.
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