Head-To-Head Survey: Rapid7 (NASDAQ:RPD) and ReposiTrak (NYSE:TRAK)

Rapid7 (NASDAQ:RPD) and ReposiTrak (NYSE:TRAK) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Volatility and Risk

Rapid7 has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, ReposiTrak has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Insider and Institutional Ownership

95.7% of Rapid7 shares are held by institutional investors. Comparatively, 27.4% of ReposiTrak shares are held by institutional investors. 2.0% of Rapid7 shares are held by insiders. Comparatively, 37.0% of ReposiTrak shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Rapid7 and ReposiTrak”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rapid7	$859.79 million	0.99	$23.38 million	$0.31	40.68
ReposiTrak	$23.29 million	5.60	$7.57 million	$0.39	18.36

Rapid7 has higher revenue and earnings than ReposiTrak. ReposiTrak is trading at a lower price-to-earnings ratio than Rapid7, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rapid7 and ReposiTrak’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rapid7	2.35%	27.89%	2.66%
ReposiTrak	32.51%	14.94%	13.16%

Analyst Ratings

This is a breakdown of recent ratings for Rapid7 and ReposiTrak, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rapid7	5	17	1	0	1.83
ReposiTrak	0	1	0	0	2.00

Rapid7 presently has a consensus price target of $12.09, suggesting a potential downside of 4.15%. Given Rapid7’s higher probable upside, equities analysts plainly believe Rapid7 is more favorable than ReposiTrak.

Summary

Rapid7 beats ReposiTrak on 8 of the 14 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 ReposiTrak

Park City Group, Inc., a software-as-a-service provider, designs, develops, and markets proprietary software products in North America. The company offers ReposiTrak MarketPlace, a supplier discovery and B2B e-commerce solution; ReposiTrak Compliance and Food Safety solutions, which reduces potential regulatory and legal risk from their supply chain partners; and ReposiTrak Supply Chain solutions that enables customers to manage relationships with suppliers. It also provides ScoreTracker, Vendor Managed Inventory, Store Level Ordering and Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager, and ActionManager supply chain solutions to manage inventory, product mix, and labor. In addition, the company offers business-consulting services to suppliers and retailers in the grocery, convenience store, and specialty retail industries, as well as professional consulting services. It primarily serves multi-store retail chains, wholesalers and distributors, and their suppliers. The company is headquartered in Murray, Utah.