Red Violet (NASDAQ:RDVT) and NetEase (NASDAQ:NTES) Head to Head Comparison

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

Insider & Institutional Ownership

63.6% of Red Violet shares are held by institutional investors. Comparatively, 11.1% of NetEase shares are held by institutional investors. 8.9% of Red Violet shares are held by insiders. Comparatively, 54.7% of NetEase shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Red Violet	10.87%	10.01%	9.21%
NetEase	30.12%	23.08%	16.90%

Volatility and Risk

Red Violet has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, NetEase has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Red Violet and NetEase, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	0	0	0	0.00
NetEase	0	1	7	0	2.88

NetEase has a consensus target price of $119.38, suggesting a potential downside of 8.10%. Given NetEase’s stronger consensus rating and higher possible upside, analysts clearly believe NetEase is more favorable than Red Violet.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$75.19 million	8.64	$7.00 million	$0.61	76.28
NetEase	$107.27 billion	0.77	$4.07 billion	$6.95	18.69

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

Summary

NetEase beats Red Violet on 10 of the 14 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 NetEase

NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments. It develops and operates PC and mobile games, as well as offers games licensed from other game developers. The company's products and services include Youdao Dictionary, an online knowledge tool; Youdao Translation, a tool specifically designed to support translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Kids' Dictionary, a smart and fun tool; smart devices, such as Youdao Dictionary Pen, Youdao Smart Learning Pad, Youdao Listening Pod, Youdao Smart Light, Youdao Pocket Translator, and Youdao Super Dictionary; online courses; interactive learning apps; and education digitalization solutions, such as Youdao Smart Learning Terminal, a device that automates paper-based homework processing; Youdao Smart Cloud, a cloud-based platform that allows third-party app developers, smart device brands, and manufacturers to the company's OCR capabilities; and Youdao Sports, a sports-centric educational system. Its products and services also include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which deliver information such as news, sports events, technology, fashion trends, and online entertainment; NetEase Mail, an email service; NetEase CC Live streaming, a live streaming platform with a focus on game broadcasting; and NetEase Pay, a payment platform. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.