Critical Review: Hortonworks (HDP) and RealPage (RP)
Hortonworks (NASDAQ: HDP) and RealPage (NASDAQ:RP) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares Hortonworks and RealPage’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Hortonworks||$184.46 million||6.97||-$251.68 million||($3.37)||-5.41|
|RealPage||$568.13 million||6.43||$16.65 million||$0.35||126.00|
RealPage has higher revenue and earnings than Hortonworks. Hortonworks is trading at a lower price-to-earnings ratio than RealPage, indicating that it is currently the more affordable of the two stocks.
This table compares Hortonworks and RealPage’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Hortonworks has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, RealPage has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
This is a breakdown of recent ratings for Hortonworks and RealPage, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hortonworks currently has a consensus target price of $20.42, indicating a potential upside of 11.93%. RealPage has a consensus target price of $46.33, indicating a potential upside of 5.06%. Given Hortonworks’ higher possible upside, research analysts plainly believe Hortonworks is more favorable than RealPage.
Institutional & Insider Ownership
50.1% of Hortonworks shares are held by institutional investors. Comparatively, 70.2% of RealPage shares are held by institutional investors. 22.5% of Hortonworks shares are held by insiders. Comparatively, 33.2% of RealPage shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
RealPage beats Hortonworks on 9 of the 13 factors compared between the two stocks.
Hortonworks, Inc. is a provider and distributor of enterprise-scale data management software platforms. The Company’s product offerings include Hortonworks Data Platform (HDP), Hortonworks Sandbox and Hortonworks DataFlow Platform (HDF). It provides support subscription offerings and related professional services for its enterprise-scale Connected Data Platforms, such as HDP and HDF. Its Data at Rest solution, the HDP, is an enterprise-scale data management platform built entirely on open source software, including Apache Hadoop. HDP combines computer servers with local storage and open source software technology to create a distributed compute and storage platform for data sets that is secure and scalable over petabytes of data within thousands of servers or nodes. Its Data in Motion solution, the HDF, is an enterprise-scale data ingest platform built entirely on open source software, including Apache NiFi.
RealPage, Inc. is a provider of technology to the real estate industry, helping owners, managers and investors. The Company’s property management solutions are referred to as Enterprise Resource Planning systems. Its on demand platform provides a single point of access and a repository of real-time lease transaction data, including prospect, renter and property data. Its platform consists of four primary categories of solutions: Property Management, Lease Management, Resident Services and Asset Optimization. These solutions provide complementary asset performance and investment decision support; risk mitigation, billing and utility management; resident engagement, spend management, operations and facilities management, and lead generation and lease management capabilities that collectively enable its clients to manage all the stages of the renter life cycle. In addition, its open architecture allows third-party applications to access its solutions using its RealPage Exchange platform.
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