UiPath (NYSE:PATH) versus Rapid7 (NASDAQ:RPD) Financial Comparison

Rapid7 (NASDAQ:RPD) and UiPath (NYSE:PATH) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

95.7% of Rapid7 shares are held by institutional investors. Comparatively, 62.5% of UiPath shares are held by institutional investors. 2.4% of Rapid7 shares are held by insiders. Comparatively, 23.2% of UiPath shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rapid7	2.61%	67.30%	2.93%
UiPath	14.79%	3.73%	2.42%

Analyst Ratings

This is a summary of current ratings and price targets for Rapid7 and UiPath, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rapid7	3	13	4	2	2.23
UiPath	1	14	1	1	2.12

Rapid7 currently has a consensus target price of $20.47, suggesting a potential upside of 61.98%. UiPath has a consensus target price of $16.00, suggesting a potential upside of 11.73%. Given Rapid7’s stronger consensus rating and higher possible upside, equities analysts plainly believe Rapid7 is more favorable than UiPath.

Risk & Volatility

Rapid7 has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, UiPath has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rapid7	$844.01 million	0.98	$25.53 million	$0.34	37.18
UiPath	$1.55 billion	4.93	-$73.69 million	$0.42	34.10

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

Summary

Rapid7 beats UiPath on 9 of the 15 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 UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.