Rubicon Technologies (NYSE:RBT) and Agora (NASDAQ:API) Head-To-Head Review

Agora (NASDAQ:API) and Rubicon Technologies (NYSE:RBT) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Institutional and Insider Ownership

40.4% of Agora shares are held by institutional investors. Comparatively, 40.8% of Rubicon Technologies shares are held by institutional investors. 1.9% of Rubicon Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Agora and Rubicon Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agora	0	1	0	0	2.00
Rubicon Technologies	0	1	1	0	2.50

Agora currently has a consensus price target of $3.20, suggesting a potential upside of 46.79%. Rubicon Technologies has a consensus price target of $0.60, suggesting a potential upside of ?. Given Rubicon Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Rubicon Technologies is more favorable than Agora.

Profitability

This table compares Agora and Rubicon Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agora	-57.83%	-13.09%	-11.75%
Rubicon Technologies	-10.44%	N/A	-33.50%

Risk & Volatility

Agora has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Rubicon Technologies has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Valuation and Earnings

This table compares Agora and Rubicon Technologies’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agora	$141.54 million	1.42	-$87.22 million	($0.81)	-2.69
Rubicon Technologies	$697.58 million	0.00	-$56.94 million	($2.49)	N/A

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

Summary

Rubicon Technologies beats Agora on 11 of the 13 factors compared between the two stocks.

About Agora

Agora, Inc. operates in real-time engagement technology business in the People's Republic of China, the United States, and internationally. The company offers real-time engagement platform-as-a-services providing developers with application programming interfaces to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications. It also provides video and voice calling, interactive live and broadcast streaming, chat, signaling, and interactive whiteboard products; and extensions, such as analytics, recording, AI noise suppression, 3D spatial audio, real-time transcription, and extensions marketplace. In addition, the company offers Application Platforms, including Flexible Classroom, a low-code application Platform as a Service, which combines video, voice, chat, signaling, whiteboard and recording functionalities into an integrated cloud-based solution for education providers; and App Builder, a no-code application platform, designed for developers with little or no coding experience to build their own applications with video conference and live streaming functionalities. It operates through Agora and Shengwang brands. Agora, Inc. was incorporated in 2013 and is headquartered in Santa Clara, California.

About Rubicon Technologies

Rubicon Technologies, Inc., a digital marketplace for waste and recycling services, provides cloud-based waste and recycling solutions to businesses, governments, and organizations worldwide. The company provides solutions for waste generators; and haulers and recyclers. It offers consultation and management services to customers for waste removal, waste management, logistics, and recycling solutions. Its consultation and management services include planning, consolidation of billing and administration, cost savings analyses, and vendor performance monitoring and management. In addition, the company offers logistics services; and markets and resells recyclable commodities. Rubicon Technologies, Inc. was founded in 2008 and is headquartered in Atlanta, Georgia.