SciQuest (NASDAQ: SQI) and Rapid7 (NASDAQ:RPD) are both small-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.
Volatility and Risk
SciQuest has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Rapid7 has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
This table compares SciQuest and Rapid7’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares SciQuest and Rapid7’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rapid7||$157.44 million||5.30||-$49.00 million||($0.99)||-19.22|
SciQuest has higher earnings, but lower revenue than Rapid7. Rapid7 is trading at a lower price-to-earnings ratio than SciQuest, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
70.7% of Rapid7 shares are owned by institutional investors. 56.9% of Rapid7 shares are owned 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.
This is a summary of recent ratings and recommmendations for SciQuest and Rapid7, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rapid7 has a consensus price target of $21.17, indicating a potential upside of 11.23%. Given Rapid7’s higher possible upside, analysts plainly believe Rapid7 is more favorable than SciQuest.
SciQuest Company Profile
SciQuest, Inc. is a United States-based public provider of spend management solutions. The Company’s offers a range of solutions, such as Spend Director, Spend Radar, Sourcing Director, Advanced Sourcing Optimizer, Total Contract Manager, Total Supplier Manager, Enterprise Reagent Manager, Accounts Payable Director, Supplier Network and Portfolio Savings Manager. Its Spend Director is an e-procurement software, which allows users’ to integrate and automate processes, suppliers, compliance and workflows. Its Portfolio Savings Manager is a cloud-based savings management software that integrates project forecasting, initiative approval workflows and real-time savings. Its chemical inventory management software, Enterprise Reagent Manager (ERM), allows scientific staff in the organization to find, source and track commercial and proprietary chemicals, reagents and lab supplies. Its Total Contract Manager is a Contract Lifecycle Management solution that offers real-time updates.
Rapid7 Company Profile
Rapid7, Inc. is a provider analytics for security and information technology (IT) operations that enable organizations to implement an analytics-driven approach to cyber security and IT operations. The Company’s analytics enable organizations to contextualize and prioritize the threats facing their physical, virtual and cloud assets, including those posed by the behaviors of their users. Leveraging its IT data and analytics platform, its solutions enable organizations to manage their cyber security exposure and manage IT operations. Its solutions empower organizations to prevent attacks by providing visibility into vulnerabilities, and allow them to detect compromises, respond to breaches and correct the underlying causes of attacks. By providing a unified IT and security platform, with automated workflow, it enables IT and security to work together to develop, operate and secure their environment.
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