Rapid7 (NASDAQ:RPD – Get Free Report) and Silvaco Group (NASDAQ:SVCO – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Institutional & Insider Ownership
95.7% of Rapid7 shares are held by institutional investors. 2.6% of Rapid7 shares are held by company insiders. Comparatively, 38.4% of Silvaco Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Rapid7 and Silvaco Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rapid7 | $844.01 million | 1.81 | $25.53 million | $0.39 | 61.13 |
| Silvaco Group | $57.88 million | 2.55 | -$320,000.00 | ($2.31) | -2.18 |
Rapid7 has higher revenue and earnings than Silvaco Group. Silvaco Group is trading at a lower price-to-earnings ratio than Rapid7, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Rapid7 and Silvaco Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rapid7 | 3.46% | -130.41% | 4.14% |
| Silvaco Group | -84.35% | -43.77% | -25.12% |
Analyst Recommendations
This is a breakdown of current ratings for Rapid7 and Silvaco Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rapid7 | 1 | 14 | 5 | 1 | 2.29 |
| Silvaco Group | 0 | 0 | 6 | 0 | 3.00 |
Rapid7 currently has a consensus target price of $33.32, indicating a potential upside of 39.75%. Silvaco Group has a consensus target price of $17.00, indicating a potential upside of 237.97%. Given Silvaco Group’s stronger consensus rating and higher possible upside, analysts clearly believe Silvaco Group is more favorable than Rapid7.
Summary
Rapid7 beats Silvaco Group on 8 of the 14 factors compared between the two stocks.
About Rapid7
Rapid7, Inc. provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions. It also offers various platforms, including Rapid7 managed threat complete consisting of managed detection response that delivers end-to-end threat detection and response, as well as offloads day-to-day vulnerability management operations. In addition, it provides Rapid7 threat complete consisting of InsightIDR, a security information and event management, and extended detection and response solution; and InsightVM, a vulnerability management solution that provides visibility across on-premise and remote endpoints for security teams to evaluate the business risks, and configurations, and share with their IT counterparts for remediation. Further, the company offers Rapid7 cloud risk complete, which includes InsightCloudSec, a cloud risk and compliance management solution; and InsightAppSec, a dynamic application security testing tool. It also provides professional services. It serves a range of industries, including business services, pharmaceuticals, technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, travel and transportation, government, online services, telecommunications, and professional services. The company was incorporated in 2000 and is headquartered in Boston, Massachusetts.
About Silvaco Group
Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.
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