Financial Analysis: Red Violet (NASDAQ:RDVT) versus iLearningEngines (NASDAQ:AILE)

Red Violet (NASDAQ:RDVT) and iLearningEngines (NASDAQ:AILE) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Profitability

This table compares Red Violet and iLearningEngines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Violet	23.49%	18.99%	17.57%
iLearningEngines	N/A	N/A	-6.20%

Volatility and Risk

Red Violet has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, iLearningEngines has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Insider & Institutional Ownership

63.6% of Red Violet shares are owned by institutional investors. Comparatively, 32.9% of iLearningEngines shares are owned by institutional investors. 9.5% of Red Violet shares are owned by company insiders. Comparatively, 61.5% of iLearningEngines shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Red Violet and iLearningEngines”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$67.47 million	5.95	$13.53 million	$1.02	28.68
iLearningEngines	$360.77 million	0.49	-$5.85 million	N/A	N/A

Red Violet has higher earnings, but lower revenue than iLearningEngines.

Analyst Recommendations

This is a breakdown of recent ratings for Red Violet and iLearningEngines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	0	1	0	3.00
iLearningEngines	0	0	2	0	3.00

Red Violet presently has a consensus target price of $25.00, indicating a potential downside of 13.82%. iLearningEngines has a consensus target price of $19.50, indicating a potential upside of 1,344.44%. Given iLearningEngines’ higher possible upside, analysts clearly believe iLearningEngines is more favorable than Red Violet.

Summary

Red Violet beats iLearningEngines on 7 of the 11 factors compared between the two stocks.

About Red Violet

Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, fraud detection and prevention, customer acquisition, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, telecommunication companies, law enforcement and government agencies, collections, law, corporate security, and investigative firms. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.

About iLearningEngines

iLearningEngines, Inc. operates AI-powered learning automation and information intelligence for corporate and educational use. The company's AI and learning automation platform is used by enterprises to productize enterprise knowledge for consumption throughout the enterprise. Its outcome-based training has deployed in regulated and detail-oriented vertical markets, such as healthcare, education, insurance, retail, oil and gas/energy, manufacturing, and government. The company was founded in 2010 and is headquartered in Bethesda, Maryland.