Red Violet (RDVT) Competitors

DigitalOcean (NYSE:DOCN) and Red Violet (NASDAQ:RDVT) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, media sentiment, risk, valuation, community ranking and earnings.

Is DOCN or RDVT more profitable?

DigitalOcean has a net margin of 10.86% compared to Red Violet's net margin of 7.17%. Red Violet's return on equity of 6.80% beat DigitalOcean's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
DigitalOcean	10.86%	-43.11%	7.64%
Red Violet	7.17%	6.80%	6.28%

Which has more risk and volatility, DOCN or RDVT?

DigitalOcean has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.

Do analysts rate DOCN or RDVT?

DigitalOcean currently has a consensus target price of $39.83, suggesting a potential upside of 37.86%. Given DigitalOcean's stronger consensus rating and higher possible upside, analysts clearly believe DigitalOcean is more favorable than Red Violet.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalOcean	1 Sell rating(s)	6 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.38
Red Violet	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Which has better earnings and valuation, DOCN or RDVT?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalOcean	$806.59M	3.26	$19.41M	$1.11	26.03
Red Violet	$79.68M	8.29	$13.53M	$0.61	77.61

Does the media favor DOCN or RDVT?

In the previous week, DigitalOcean had 3 more articles in the media than Red Violet. MarketBeat recorded 10 mentions for DigitalOcean and 7 mentions for Red Violet. Red Violet's average media sentiment score of 1.30 beat DigitalOcean's score of 0.72 indicating that Red Violet is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
DigitalOcean	5 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Red Violet	4 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals have more ownership in DOCN or RDVT?

49.8% of DigitalOcean shares are held by institutional investors. Comparatively, 63.6% of Red Violet shares are held by institutional investors. 1.0% of DigitalOcean shares are held by company insiders. Comparatively, 8.9% of Red Violet shares are held by company 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.

Does the MarketBeat Community believe in DOCN or RDVT?

DigitalOcean received 2 more outperform votes than Red Violet when rated by MarketBeat users. However, 62.26% of users gave Red Violet an outperform vote while only 46.90% of users gave DigitalOcean an outperform vote.

Company	Underperform	Outperform
DigitalOcean	Outperform Votes 68 46.90%	Underperform Votes 77 53.10%
Red Violet	Outperform Votes 66 62.26%	Underperform Votes 40 37.74%

Summary

DigitalOcean beats Red Violet on 10 of the 17 factors compared between the two stocks.