Textmunication Holdgings (OTCMKTS:TXHD) and Hortonworks (NASDAQ:HDP) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Risk and Volatility

Textmunication Holdgings has a beta of -1.89, suggesting that its share price is 289% less volatile than the S&P 500. Comparatively, Hortonworks has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Profitability

This table compares Textmunication Holdgings and Hortonworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Textmunication Holdgings -28.66% N/A -50.84%
Hortonworks -49.78% N/A -57.11%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Textmunication Holdgings and Hortonworks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Textmunication Holdgings 0 0 0 0 N/A
Hortonworks 0 2 9 0 2.82

Hortonworks has a consensus price target of $27.85, suggesting a potential upside of 89.71%. Given Hortonworks’ higher probable upside, analysts clearly believe Hortonworks is more favorable than Textmunication Holdgings.

Valuation and Earnings

This table compares Textmunication Holdgings and Hortonworks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Textmunication Holdgings $940,000.00 2.33 -$7.64 million N/A N/A
Hortonworks $261.81 million 4.72 -$204.50 million ($3.06) -4.80

Textmunication Holdgings has higher earnings, but lower revenue than Hortonworks.

Insider and Institutional Ownership

0.1% of Textmunication Holdgings shares are held by institutional investors. Comparatively, 80.9% of Hortonworks shares are held by institutional investors. 50.0% of Textmunication Holdgings shares are held by company insiders. Comparatively, 15.6% of Hortonworks shares are held by company 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.

Summary

Hortonworks beats Textmunication Holdgings on 6 of the 10 factors compared between the two stocks.

Textmunication Holdgings Company Profile

Textmunication Holdings, Inc. provides mobile marketing solutions, rewards, and loyalty services in the United States, Canada, and Mexico. The company operates an online mobile marketing platform that provides mobile coupons, mobile voting/polls, multimedia messaging, text messaging, Web widgets/online forms, and loyalty and rewards programs; and SMS reminders related to various appointments, anniversaries, b-days, oil changes, tune ups, and other events, as well as offers APIs that integrates with various systems or applications. It serves quick service restaurants; gyms, and health and fitness facilities; casinos, golf courses, bowling centers, and comedy clubs; retail stores; real estate and insurance sectors; digital marketing agencies; and investor relation firms, as well as bars, salons, and medical professionals. The company is based in Pleasant Hill, California.

Hortonworks Company Profile

Hortonworks, Inc. provides data management platforms, services, and solutions in North America, the Asia Pacific, Europe, and Latin America. It offers Hortonworks Data Platform (HDP), an enterprise-scale data management platform which provides a platform for multi-workload data processing; Hortonworks DataFlow, a data-in-motion platform to automate and secure Internet of anything data flows, as well as to collect, conduct, and curate real-time business insights and actions derived from data in motion, including sensors, machines, geolocation devices, clicks, server logs, and social feeds; and Hortonworks DataPlane Service simplifies managing, securing, governing, provisioning, and consuming distributed data systems. The company also provides Azure HDInsight, a data cloud service that provides customers flexible big data environments on the Azure cloud; Hortonworks Data Cloud for Amazon Web Services, a big data cloud service for analyzing and processing data, and enabling businesses to achieve insights quickly and with flexibility; Hortonworks Cybersecurity Platform (HCP) offers view of business risk through a security lens; and Hortonworks Sandbox, a personal, portable, and free to use Hadoop environment designed to offer the easiest way to get started with HDP or HDF. In addition, it offers support subscription, consulting, and education services. Further, the company's connected data platforms are primarily provided under the Apache open source license with rights to use, copy, modify, and redistribute the software. It sells its products through direct sales team and reseller partners. Hortonworks, Inc. was founded in 2011 and is headquartered in Santa Clara, California.

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