Rapid7 (RPD) vs. National Instruments (NATI) Financial Analysis

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rapid7 and National Instruments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rapid7 0 1 8 0 2.89
National Instruments 0 1 2 0 2.67

Rapid7 presently has a consensus target price of $23.72, indicating a potential upside of 1.25%. National Instruments has a consensus target price of $42.00, indicating a potential downside of 7.79%. Given Rapid7’s stronger consensus rating and higher probable upside, research analysts clearly believe Rapid7 is more favorable than National Instruments.

Profitability

This table compares Rapid7 and National Instruments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rapid7 -22.44% -115.79% -17.52%
National Instruments 4.06% 10.76% 8.03%

Insider & Institutional Ownership

68.5% of Rapid7 shares are held by institutional investors. Comparatively, 77.9% of National Instruments shares are held by institutional investors. 56.9% of Rapid7 shares are held by insiders. Comparatively, 9.9% of National Instruments shares are held 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.

Valuation & Earnings

This table compares Rapid7 and National Instruments’ 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 6.78 -$49.00 million ($0.99) -23.67
National Instruments $1.29 billion 4.62 $52.41 million $0.40 113.88

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

Dividends

National Instruments pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. Rapid7 does not pay a dividend. National Instruments pays out 210.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

National Instruments beats Rapid7 on 9 of the 15 factors compared between the two stocks.

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.

National Instruments Company Profile

National Instruments Corporation (NI) designs, manufactures and sells systems to engineers and scientists. The Company offers a line of measurement, automation and control products. It offers products, technology and services, which include system design software, programming tools, application software, modular hardware products and related driver software, production test systems, NI education platform, software products for teaching and hardware products for teaching. It also offers NI Services, including hardware services and maintenance, software maintenance services, and training and certification. Its products are used across various industries in a range of applications, including research and development, simulation and modeling, prototype and validation, production testing and industrial control and field and factory service and repair. It serves various industries and applications, such as consumer electronics, commercial aerospace, telecommunications and others.

Receive News & Ratings for Rapid7 Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rapid7 and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply