Critical Comparison: AppFolio (NASDAQ:APPF) versus Grindr (NYSE:GRND)

AppFolio (NASDAQ:APPF) and Grindr (NYSE:GRND) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility & Risk

AppFolio has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Grindr has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Institutional and Insider Ownership

85.2% of AppFolio shares are owned by institutional investors. Comparatively, 7.2% of Grindr shares are owned by institutional investors. 4.7% of AppFolio shares are owned by company insiders. Comparatively, 67.7% of Grindr shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares AppFolio and Grindr”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppFolio	$794.20 million	9.90	$204.07 million	$5.57	39.29
Grindr	$344.64 million	6.42	-$131.00 million	($0.37)	-32.36

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

Profitability

This table compares AppFolio and Grindr’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AppFolio	22.48%	25.97%	20.95%
Grindr	-11.99%	80.21%	16.71%

Analyst Recommendations

This is a breakdown of current ratings for AppFolio and Grindr, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppFolio	0	1	8	0	2.89
Grindr	1	0	5	0	2.67

AppFolio presently has a consensus target price of $306.00, indicating a potential upside of 39.82%. Grindr has a consensus target price of $22.50, indicating a potential upside of 87.89%. Given Grindr’s higher probable upside, analysts plainly believe Grindr is more favorable than AppFolio.

Summary

AppFolio beats Grindr on 11 of the 14 factors compared between the two stocks.

About AppFolio

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions. The company also provides value-added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.