Head to Head Contrast: Red Violet (NASDAQ:RDVT) versus Black Knight (NYSE:BKI)

Red Violet (NASDAQ:RDVT) and Black Knight (NYSE:BKI) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Earnings & Valuation

This table compares Red Violet and Black Knight’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Red Violet $30.29 million 8.21 -$11.08 million N/A N/A
Black Knight $1.18 billion 9.84 $108.80 million $1.72 42.96

Black Knight has higher revenue and earnings than Red Violet.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Red Violet and Black Knight, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red Violet 0 0 0 0 N/A
Black Knight 0 3 12 0 2.80

Black Knight has a consensus target price of $96.69, indicating a potential upside of 30.85%. Given Black Knight’s higher probable upside, analysts plainly believe Black Knight is more favorable than Red Violet.

Volatility & Risk

Red Violet has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Black Knight has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Profitability

This table compares Red Violet and Black Knight’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Red Violet -28.21% -17.39% -14.87%
Black Knight 19.21% 12.45% 5.99%

Insider and Institutional Ownership

24.9% of Red Violet shares are held by institutional investors. Comparatively, 89.7% of Black Knight shares are held by institutional investors. 6.0% of Red Violet shares are held by company insiders. Comparatively, 4.0% of Black Knight shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Black Knight beats Red Violet on 11 of the 12 factors compared between the two stocks.

About Red Violet

Red Violet, Inc., a software and services company, specializes in data fusion and analytics providing cloud-based mission-critical information solutions to enterprises in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, and legislative compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, and help professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, and telecommunication companies; law enforcement and government agencies; and collections, corporate security, and investigative law firms, as well as various types of corporate risk for purposes, such as identity verification, risk assessment, fraud detection, and compliance. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective clients, distributors, resellers, strategic partners, and installed base of current clients, as well as through direct sales. The company was founded in 2017 and is headquartered in Boca Raton, Florida.

About Black Knight

Black Knight, Inc. provides integrated software, data, and analytics solutions in North America and Internationally. The Software Solutions segment offers software and hosting solutions comprising MSP, a software as a service application platform for mortgage and home equity loans; Bankruptcy/Foreclosure solutions for managing and automating a range of various workflow processes involving distressed and non-performing loans; Invoicing, a Web-based solution that helps servicers to save time and eliminate errors; Servicing Digital, a white-labeled mobile solution; Loss Mitigation, an integrated solution that supports retention and liquidation workouts; Claims, an integrated solution which manages default-related claims process; and Empower, a loan origination system used by lenders to originate mortgages, home equity loans, and lines of credit. This segment also provides LendingSpace, a lending platform that facilitates real-time communication between correspondent loan sellers and purchases; Exchange, a platform that provides an interconnected network of originators, agents, settlement services providers, and mortgage loan investors; and Expedite Close, an end-to-end closing solution that offers the flexibility and scalability lenders need in an eClosing software solution; Optimal Blue PPE, a product and pricing solution used by lenders and mortgage brokers; CompassPoint, which provides tools, reporting, calculations, and automation capabilities; and AIVA, an artificial intelligence virtual assistant. The Data and Analytics segment offers property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, behavioral models, lead generation, multiple listing service, and other data solutions. The company was formerly known as Black Knight Financial Services, Inc. and changed its name to Black Knight, Inc. in October 2017. Black Knight, Inc. was founded in 2013 and is headquartered in Jacksonville, Florida.

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