Red Violet (NASDAQ:RDVT) vs. Gartner (NYSE:IT) Head-To-Head Analysis

Gartner (NYSE:IT) and Red Violet (NASDAQ:RDVT) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Institutional and Insider Ownership

91.5% of Gartner shares are owned by institutional investors. Comparatively, 63.6% of Red Violet shares are owned by institutional investors. 2.6% of Gartner shares are owned by insiders. Comparatively, 8.9% of Red Violet 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gartner	11.99%	525.46%	13.45%
Red Violet	16.54%	16.12%	14.77%

Risk & Volatility

Gartner has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Valuation and Earnings

This table compares Gartner and Red Violet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gartner	$6.50 billion	1.80	$729.23 million	$11.15	16.58
Red Violet	$90.25 million	13.88	$13.15 million	$1.12	69.66

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gartner	2	6	2	1	2.18
Red Violet	0	0	5	1	3.17

Gartner currently has a consensus price target of $188.50, suggesting a potential upside of 1.94%. Red Violet has a consensus price target of $83.50, suggesting a potential upside of 7.02%. Given Red Violet’s stronger consensus rating and higher possible upside, analysts plainly believe Red Violet is more favorable than Gartner.

Summary

Red Violet beats Gartner on 9 of the 14 factors compared between the two stocks.

About Gartner

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.

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.