AppFolio (NASDAQ: APPF) and MaxPoint Interactive (NASDAQ:MXPT) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for AppFolio and MaxPoint Interactive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AppFolio 0 3 2 0 2.40
MaxPoint Interactive 0 1 0 0 2.00

AppFolio presently has a consensus target price of $36.50, suggesting a potential downside of 28.01%. Given AppFolio’s stronger consensus rating and higher possible upside, equities research analysts plainly believe AppFolio is more favorable than MaxPoint Interactive.

Valuation and Earnings

This table compares AppFolio and MaxPoint Interactive’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AppFolio $124.18 million 13.85 $4.64 million $0.03 1,690.56
MaxPoint Interactive $144.42 million 0.65 -$8.89 million ($2.21) -6.27

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

Risk & Volatility

AppFolio has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, MaxPoint Interactive has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500.

Insider & Institutional Ownership

20.9% of AppFolio shares are held by institutional investors. Comparatively, 8.0% of MaxPoint Interactive shares are held by institutional investors. 44.8% of AppFolio shares are held by company insiders. Comparatively, 57.1% of MaxPoint Interactive shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares AppFolio and MaxPoint Interactive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AppFolio 0.84% 1.46% 1.12%
MaxPoint Interactive -10.18% -45.24% -19.16%

Summary

AppFolio beats MaxPoint Interactive on 10 of the 13 factors compared between the two stocks.

AppFolio Company Profile

AppFolio, Inc. is a provider of industry-specific, cloud-based software solutions for small and medium-sized businesses (SMBs) in the property management and legal industries. The Company’s mobile-optimized software solutions enable its customers to work at any time and from anywhere across multiple devices. Its property management software provides small and medium-sized property managers with an end-to-end solution to their business needs. The Company’s legal software provides solo practitioners and small law firms with a streamlined practice and case management solution, allowing them to manage their practices and case load. It also offers Value+ services, such as its professionally designed Websites and electronic payment services. The Company’s property manager customers include third-party managers and owner-operators, managing single- and multi-family residences, commercial property and student housing, as well as mixed real estate portfolios.

MaxPoint Interactive Company Profile

MaxPoint Interactive, Inc. is a marketing technology company. The Company provides business intelligence and marketing automation solution. The Company’s MaxPoint Intelligence Platform is a cloud-based software service that enables to predict local demand for national brands based on consumers’ purchase power and intent and manage customized digital advertisements containing in-store offers and promotions to reach consumers at a local level across display, mobile, social and video channels. Through marketing automation and direct integrations with real-time bidding (RTB) exchanges, the Company’s platform delivers customized digital advertisements containing product and store specific promotions to local consumers. The Company’s customers are located in the United States and Europe, and consist of enterprises with national brands in the consumer products, retail, automotive, financial services, healthcare, telecommunications and entertainment industries.

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