Reviewing Red Violet (NASDAQ:RDVT) and Nebius Group (NASDAQ:NBIS)

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

Insider & Institutional Ownership

63.6% of Red Violet shares are held by institutional investors. Comparatively, 21.9% of Nebius Group shares are held by institutional investors. 8.9% of Red Violet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Red Violet and Nebius Group”s gross 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	9.87	$7.00 million	$0.60	88.43
Nebius Group	$117.50 million	244.44	-$641.40 million	N/A	N/A

Red Violet has higher earnings, but lower revenue than Nebius Group.

Risk & Volatility

Red Violet has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Nebius Group has a beta of 3.45, suggesting that its stock price is 245% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Red Violet and Nebius Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	1	1	0	2.50
Nebius Group	0	2	5	2	3.00

Red Violet presently has a consensus target price of $60.00, indicating a potential upside of 13.08%. Nebius Group has a consensus target price of $91.20, indicating a potential downside of 25.14%. Given Red Violet’s higher probable upside, research analysts plainly believe Red Violet is more favorable than Nebius Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Red Violet	10.57%	9.89%	9.05%
Nebius Group	99.34%	6.14%	5.32%

Summary

Nebius Group beats Red Violet on 7 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 Nebius Group

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.