AppFolio (NASDAQ: APPF) and Mitel Networks (NASDAQ:MITL) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Institutional & Insider Ownership
24.9% of AppFolio shares are held by institutional investors. Comparatively, 80.1% of Mitel Networks shares are held by institutional investors. 44.8% of AppFolio shares are held by company insiders. Comparatively, 16.5% of Mitel Networks 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.
Valuation and Earnings
This table compares AppFolio and Mitel Networks’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AppFolio||$105.59 million||13.66||-$8.28 million||$0.16||265.64|
|Mitel Networks||$987.60 million||0.99||-$217.30 million||($2.06)||-3.96|
AppFolio has higher earnings, but lower revenue than Mitel Networks. Mitel Networks is trading at a lower price-to-earnings ratio than AppFolio, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
AppFolio has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Mitel Networks has a beta of 2.67, suggesting that its share price is 167% more volatile than the S&P 500.
This is a summary of current ratings and price targets for AppFolio and Mitel Networks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AppFolio presently has a consensus price target of $40.50, indicating a potential downside of 4.71%. Mitel Networks has a consensus price target of $12.17, indicating a potential upside of 49.10%. Given Mitel Networks’ stronger consensus rating and higher probable upside, analysts plainly believe Mitel Networks is more favorable than AppFolio.
This table compares AppFolio and Mitel Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AppFolio beats Mitel Networks on 8 of the 14 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.
Mitel Networks Company Profile
Mitel Networks Corporation is a provider of business communications and collaboration software, services and solutions. The Company’s segments include Cloud and Enterprise. The Enterprise segment sells and supports products and services for premise-based customers. The Cloud segment sells and supports products that are deployed in a cloud environment. The Company’s product portfolio includes premises and cloud-based enterprise communications infrastructure products and solutions, unified communications and collaboration (UCC) and contact center applications and a range of service offerings. The Company’s Cloud Division offers a range of private, public, hybrid and mobile Software as a Service (SaaS) solutions for businesses of all sizes. This includes Unified Communications as a Service (UCaaS) solutions. Its Enterprise Division portfolio integrates voice, UCC applications, and contact center applications on fixed and mobile networks across a range of end user devices.
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