Head-To-Head Comparison: SS&C Technologies (SSNC) and Rapid7 (RPD)
SS&C Technologies (NASDAQ: SSNC) and Rapid7 (NASDAQ:RPD) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
Volatility and Risk
SS&C Technologies has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Rapid7 has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
SS&C Technologies pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. Rapid7 does not pay a dividend. SS&C Technologies pays out 26.7% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations and price targets for SS&C Technologies and Rapid7, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SS&C Technologies currently has a consensus target price of $48.33, indicating a potential downside of 2.30%. Rapid7 has a consensus target price of $21.17, indicating a potential downside of 5.08%. Given SS&C Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe SS&C Technologies is more favorable than Rapid7.
Earnings and Valuation
This table compares SS&C Technologies and Rapid7’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SS&C Technologies||$1.48 billion||6.87||$130.99 million||$1.05||47.11|
|Rapid7||$157.44 million||6.22||-$49.00 million||($0.99)||-22.53|
SS&C Technologies has higher revenue and earnings than Rapid7. Rapid7 is trading at a lower price-to-earnings ratio than SS&C Technologies, indicating that it is currently the more affordable of the two stocks.
This table compares SS&C Technologies and Rapid7’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
86.0% of SS&C Technologies shares are owned by institutional investors. Comparatively, 70.7% of Rapid7 shares are owned by institutional investors. 17.6% of SS&C Technologies shares are owned by insiders. Comparatively, 56.9% of Rapid7 shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
SS&C Technologies beats Rapid7 on 14 of the 17 factors compared between the two stocks.
About SS&C Technologies
SS&C Technologies Holdings, Inc. is a holding company. The Company is a provider of software products and software-enabled services that allow financial services providers to automate complex business processes and manage their information processing requirements. The Company’s portfolio of software products and software-enabled services allows its clients to automate and integrate front-office functions, such as trading and modeling, middle-office functions, such as portfolio management and reporting, and back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing. The Company provides its solutions across the globe to over 11,000 clients, principally within the institutional asset and wealth management, alternative investment management, financial advisory and financial institutions vertical markets. Its portfolio includes over 90 products and software-enabled services.
Rapid7, Inc. is a provider analytics for security and information technology (IT) operations that enable organizations to implement an analytics-driven approach to cyber security and IT operations. The Company’s analytics enable organizations to contextualize and prioritize the threats facing their physical, virtual and cloud assets, including those posed by the behaviors of their users. Leveraging its IT data and analytics platform, its solutions enable organizations to manage their cyber security exposure and manage IT operations. Its solutions empower organizations to prevent attacks by providing visibility into vulnerabilities, and allow them to detect compromises, respond to breaches and correct the underlying causes of attacks. By providing a unified IT and security platform, with automated workflow, it enables IT and security to work together to develop, operate and secure their environment.
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