Head-To-Head Contrast: Apptio (NASDAQ:APTI) vs. Rapid7 (RPD)

Rapid7 (NASDAQ:RPD) and Apptio (NASDAQ:APTI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Rapid7 and Apptio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rapid7 -24.40% -105.43% -17.82%
Apptio -11.98% -19.28% -7.04%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Rapid7 and Apptio, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rapid7 0 3 10 0 2.77
Apptio 0 2 7 0 2.78

Rapid7 currently has a consensus price target of $34.85, indicating a potential downside of 4.69%. Apptio has a consensus price target of $35.89, indicating a potential upside of 4.60%. Given Apptio’s stronger consensus rating and higher probable upside, analysts clearly believe Apptio is more favorable than Rapid7.

Valuation & Earnings

This table compares Rapid7 and Apptio’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rapid7 $200.94 million 8.52 -$45.47 million ($1.05) -34.82
Apptio $188.52 million 8.11 -$25.62 million ($0.64) -53.61

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

Institutional & Insider Ownership

77.9% of Rapid7 shares are held by institutional investors. Comparatively, 72.5% of Apptio shares are held by institutional investors. 25.6% of Rapid7 shares are held by insiders. Comparatively, 24.2% of Apptio 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.

Risk and Volatility

Rapid7 has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Apptio has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Rapid7 Company Profile

Rapid7, Inc. provides analytics solutions for security and information (IT) operations. Its vulnerability management solutions include InsightVM and Nexpose, which enables customers to assess and remediate their overall exposure to cyber risk; InsightAppSec, an insight platform based solution; AppSpider, an application security testing solution; and Metasploit, a penetration testing software solution. The company's incident detection and response solutions comprise InsightIDR, an insight platform based solution; Managed Detection and Response, an outsourced service; and incident response services that offer customers with access to security experts and experience. In addition, it provides Logentries, a cloud-based solution for collecting, searching, visualizing, and analyzing log data, as well as enables organizations to store and search data; InsightOps, an IT operations solution to centralize machine data from organizations' IT environments for operational awareness and control; and Komand, a solution, which is designed to automatically identify risks, respond to incidents, and address issues. Further, the company provides security advisory services, such as cyber security maturity assessment, incident response program development, penetration testing, security program development, Virtual CISO, IoT security, and threat modeling services. It offers its products through a combination of perpetual and term software licenses, cloud-based subscriptions, and managed services. The company serves clients in technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, transportation, government, and professional services industries through sales teams, and indirect channel partner relationships, as well as directly in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Rapid7, Inc. was incorporated in 2000 and is headquartered in Boston, Massachusetts.

Apptio Company Profile

Apptio, Inc. provides cloud-based technology business management (TBM) solutions to enterprises. Its cloud-based platform and SaaS applications enable IT leaders to analyze, optimize, and plan technology investments, as well as to benchmark financial and operational performance against peers. The company's TBM solutions consist of adaptive data management, which aggregates, cleanses, and correlates large amounts of customer data from various sources; and standard IT operating model and taxonomy that offers a standard model for how IT costs are captured, categorized, and allocated to IT and business services. Its solution also comprises visual modeling, which allows users to build and manage the financial and operational model of their IT organization; powerful calculation engine that allows the models to be applied across very large data sets accessible to users through the analytics capabilities included in its applications; intuitive, self-service analytics for IT and business users; and modular applications comprising cost transparency, IT benchmarking, business insights, bill of IT, and IT planning applications. The company operates in the United States, the United Kingdom, Germany, Denmark, the Netherlands, Australia, Canada, France, Singapore, and Italy. Apptio, Inc. was founded in 2007 and is headquartered in Bellevue, Washington.

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