AppLovin (NASDAQ:APP) vs. Enpro (NYSE:NPO) Critical Review

AppLovin (NASDAQ:APP) and Enpro (NYSE:NPO) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares AppLovin and Enpro”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppLovin	$5.48 billion	37.58	$3.33 billion	$11.64	52.67
Enpro	$1.14 billion	5.67	$40.50 million	$2.03	151.00

AppLovin has higher revenue and earnings than Enpro. AppLovin is trading at a lower price-to-earnings ratio than Enpro, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

41.9% of AppLovin shares are held by institutional investors. Comparatively, 98.3% of Enpro shares are held by institutional investors. 13.7% of AppLovin shares are held by insiders. Comparatively, 1.6% of Enpro shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AppLovin and Enpro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AppLovin	64.29%	219.37%	57.43%
Enpro	3.70%	11.33%	6.89%

Analyst Ratings

This is a summary of current ratings and recommmendations for AppLovin and Enpro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppLovin	0	5	17	1	2.83
Enpro	0	2	2	0	2.50

AppLovin presently has a consensus price target of $664.35, indicating a potential upside of 8.36%. Enpro has a consensus price target of $315.00, indicating a potential upside of 2.76%. Given AppLovin’s stronger consensus rating and higher possible upside, analysts clearly believe AppLovin is more favorable than Enpro.

Risk and Volatility

AppLovin has a beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500. Comparatively, Enpro has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Summary

AppLovin beats Enpro on 13 of the 15 factors compared between the two stocks.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.

About Enpro

Enpro Inc. design, develops, manufactures, and markets proprietary, value-added products and solutions to safeguard critical environments in the United States, Europe, and internationally. It operates through two segments, Sealing Technologies and Advanced Surface Technologies. The Sealing Technologies segment offers single-use hygienic seals, tubing, components and assemblies; metallic, non-metallic, and composite material gaskets; dynamic seals; compression packing; hydraulic components; expansion joints; and wall penetration products for chemical and petrochemical processing, pulp and paper processing, nuclear energy, hydrogen, natural gas, food and biopharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, commercial vehicle, aerospace, medical, filtration, and semiconductor fabrication industries. The Advanced Surface Technologies segment offers cleaning, coating, testing, refurbishment, and verification services for critical components and assemblies used in semiconductor manufacturing equipment, as well as for critical applications in the space, aerospace, and defense markets; and specialized optical filters and thin-film coatings for various applications in the industrial technology, life sciences, and semiconductor markets. The company was formerly known as EnPro Industries, Inc. and changed its name to Enpro Inc. in December 2023. Enpro Inc. was incorporated in 2002 and is headquartered in Charlotte, North Carolina.