Reviewing Red Violet (NASDAQ:RDVT) and Asure Software (NASDAQ:ASUR)

Red Violet (NASDAQ:RDVT) and Asure Software (NASDAQ:ASUR) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Red Violet and Asure Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Violet	16.54%	16.12%	14.77%
Asure Software	-5.42%	8.19%	3.27%

Valuation & Earnings

This table compares Red Violet and Asure Software”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$90.25 million	13.79	$13.15 million	$1.12	69.21
Asure Software	$140.54 million	1.73	-$13.13 million	($0.29)	-29.10

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

Risk and Volatility

Red Violet has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Asure Software has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Red Violet and Asure Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	2	3	0	2.60
Asure Software	1	1	2	1	2.60

Red Violet presently has a consensus price target of $81.33, indicating a potential upside of 4.92%. Asure Software has a consensus price target of $13.00, indicating a potential upside of 54.03%. Given Asure Software’s higher probable upside, analysts clearly believe Asure Software is more favorable than Red Violet.

Insider & Institutional Ownership

63.6% of Red Violet shares are held by institutional investors. Comparatively, 71.6% of Asure Software shares are held by institutional investors. 8.9% of Red Violet shares are held by company insiders. Comparatively, 8.9% of Asure Software shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Red Violet beats Asure Software on 9 of the 13 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 Asure Software

Asure Software, Inc. engages in the provision of cloud-based Human Capital Management (HCM) software solutions in the United States. It provides its human resources (HR) tool as Software-as-a-Service that helps various small and medium-sized businesses to build productive workforce to help them stay compliant and allocate resources to grow their business. The company's solutions include Asure Payroll & Tax, an integrated solution that simplifies payroll and automates regulations associated with payroll and taxes, including wages, benefits, overtime, garnishments, tips, direct deposits, and fair labor standard act, as well as federal, state, and local payroll taxes; and Tax Management Solutions, that provides payroll tax processing software and service solutions, as well as bulk filing and processing support of employee retention tax credits, for the payroll service industry, mid-market, and corporate employers. It also provides HR compliance and services, including HR support, which provides an on-demand HR resource library, phone, and email support for various HR issues and compliance, and policy updates; Strategic HR, which provides in-depth support for strategic HR decision making; and Total HR, which provides a complete HR outsourcing solution, for handling HR complexities, such as employee self-service, applicant tracking, onboarding, and compliance. In addition, the company offers Time and Attendance, which provides cost savings and return on investment gains come in the form of strategic use of labor dollars and the elimination of time theft; and AsureMarketplace that automates interactions between its HCM systems with third-party providers. Asure Software, Inc. was incorporated in 1985 and is headquartered in Austin, Texas.