Gartner (NYSE:IT – Get Free Report) and Red Violet (NASDAQ:RDVT – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Analyst Ratings
This is a summary of current ratings and price targets for Gartner and Red Violet, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gartner | 2 | 6 | 2 | 1 | 2.18 |
| Red Violet | 0 | 0 | 5 | 1 | 3.17 |
Gartner currently has a consensus target price of $188.50, suggesting a potential upside of 1.94%. Red Violet has a consensus target price of $83.50, suggesting a potential upside of 7.02%. Given Red Violet’s stronger consensus rating and higher probable upside, analysts clearly believe Red Violet is more favorable than Gartner.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Gartner | 11.99% | 525.46% | 13.45% |
| Red Violet | 16.54% | 16.12% | 14.77% |
Institutional and Insider Ownership
91.5% of Gartner shares are held by institutional investors. Comparatively, 63.6% of Red Violet shares are held by institutional investors. 2.6% of Gartner shares are held by company insiders. Comparatively, 8.9% of Red Violet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Gartner and Red Violet”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gartner | $6.50 billion | 1.80 | $729.23 million | $11.15 | 16.58 |
| Red Violet | $90.25 million | 13.88 | $13.15 million | $1.12 | 69.66 |
Gartner has higher revenue and earnings than Red Violet. Gartner is trading at a lower price-to-earnings ratio than Red Violet, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Gartner has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.
Summary
Red Violet beats Gartner on 9 of the 14 factors compared between the two stocks.
About Gartner
Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.
About Red Violet
Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, fraud detection and prevention, customer acquisition, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, telecommunication companies, law enforcement and government agencies, collections, law, corporate security, and investigative firms. 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 customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.
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