Reviewing ODDITY Tech (NASDAQ:ODD) & AppFolio (NASDAQ:APPF)

ODDITY Tech (NASDAQ:ODD) and AppFolio (NASDAQ:APPF) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for ODDITY Tech and AppFolio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ODDITY Tech	3	9	1	0	1.85
AppFolio	0	1	9	0	2.90

ODDITY Tech currently has a consensus price target of $31.36, suggesting a potential upside of 132.15%. AppFolio has a consensus price target of $252.29, suggesting a potential upside of 56.53%. Given ODDITY Tech’s higher possible upside, equities research analysts plainly believe ODDITY Tech is more favorable than AppFolio.

Institutional & Insider Ownership

35.9% of ODDITY Tech shares are held by institutional investors. Comparatively, 85.2% of AppFolio shares are held by institutional investors. 1.6% of AppFolio shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

ODDITY Tech has a beta of 2.48, suggesting that its stock price is 148% more volatile than the S&P 500. Comparatively, AppFolio has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares ODDITY Tech and AppFolio”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ODDITY Tech	$809.84 million	0.96	$110.75 million	$1.80	7.51
AppFolio	$950.82 million	5.99	$140.92 million	$4.20	38.37

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

Profitability

This table compares ODDITY Tech and AppFolio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ODDITY Tech	13.68%	29.84%	11.22%
AppFolio	15.27%	32.35%	25.69%

Summary

AppFolio beats ODDITY Tech on 12 of the 14 factors compared between the two stocks.

About ODDITY Tech

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands. In addition, it operates ODDITY LABS, a biotechnology center, which develops various ingredients, including novel molecules, probiotics, and peptides for beauty and wellness products. Oddity Tech Ltd. was incorporated in 2013 and is headquartered in Tel Aviv, Israel.

About AppFolio

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions. The company also provides value-added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.