MaxPoint Interactive (NASDAQ: MXPT) and Hortonworks (NASDAQ:HDP) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for MaxPoint Interactive and Hortonworks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MaxPoint Interactive 0 1 0 0 2.00
Hortonworks 1 3 13 0 2.71

Hortonworks has a consensus price target of $18.36, indicating a potential upside of 7.73%. Given Hortonworks’ stronger consensus rating and higher possible upside, analysts plainly believe Hortonworks is more favorable than MaxPoint Interactive.

Institutional and Insider Ownership

8.0% of MaxPoint Interactive shares are owned by institutional investors. Comparatively, 49.6% of Hortonworks shares are owned by institutional investors. 57.1% of MaxPoint Interactive shares are owned by insiders. Comparatively, 26.0% of Hortonworks shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

MaxPoint Interactive has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Hortonworks has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Valuation & Earnings

This table compares MaxPoint Interactive and Hortonworks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MaxPoint Interactive $144.42 million 0.65 -$8.89 million ($2.21) -6.25
Hortonworks $217.29 million 3.24 -$223.00 million ($3.80) -4.48

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

Profitability

This table compares MaxPoint Interactive and Hortonworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MaxPoint Interactive -10.18% -45.24% -19.16%
Hortonworks -107.07% -765.37% -100.38%

Summary

MaxPoint Interactive beats Hortonworks on 7 of the 13 factors compared between the two stocks.

MaxPoint Interactive Company Profile

MaxPoint Interactive, Inc. is a marketing technology company. The Company provides business intelligence and marketing automation solution. The Company’s MaxPoint Intelligence Platform is a cloud-based software service that enables to predict local demand for national brands based on consumers’ purchase power and intent and manage customized digital advertisements containing in-store offers and promotions to reach consumers at a local level across display, mobile, social and video channels. Through marketing automation and direct integrations with real-time bidding (RTB) exchanges, the Company’s platform delivers customized digital advertisements containing product and store specific promotions to local consumers. The Company’s customers are located in the United States and Europe, and consist of enterprises with national brands in the consumer products, retail, automotive, financial services, healthcare, telecommunications and entertainment industries.

Hortonworks Company Profile

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.

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