Analyzing Red Violet (NASDAQ:RDVT) & CCC Intelligent Solutions (NYSE:CCCS)

CCC Intelligent Solutions (NYSE:CCCS) and Red Violet (NASDAQ:RDVT) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CCC Intelligent Solutions and Red Violet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CCC Intelligent Solutions	0	3	5	0	2.63
Red Violet	0	0	1	0	3.00

CCC Intelligent Solutions presently has a consensus target price of $13.75, indicating a potential upside of 26.73%. Red Violet has a consensus target price of $25.00, indicating a potential downside of 6.09%. Given CCC Intelligent Solutions’ higher possible upside, research analysts plainly believe CCC Intelligent Solutions is more favorable than Red Violet.

Earnings & Valuation

This table compares CCC Intelligent Solutions and Red Violet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CCC Intelligent Solutions	$909.60 million	7.42	-$92.48 million	($0.21)	-51.67
Red Violet	$67.47 million	5.42	$13.53 million	$1.02	26.10

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

Risk & Volatility

CCC Intelligent Solutions has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Insider & Institutional Ownership

95.8% of CCC Intelligent Solutions shares are owned by institutional investors. Comparatively, 63.6% of Red Violet shares are owned by institutional investors. 6.7% of CCC Intelligent Solutions shares are owned by company insiders. Comparatively, 9.5% of Red Violet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CCC Intelligent Solutions	2.36%	5.16%	3.10%
Red Violet	23.49%	18.99%	17.57%

Summary

Red Violet beats CCC Intelligent Solutions on 9 of the 14 factors compared between the two stocks.

About CCC Intelligent Solutions

CCC Intelligent Solutions Holdings Inc., operates as a software as a service company for the property and casualty insurance economy in the United States and China. The company's cloud-based software as a service platform connects trading partners, facilitates commerce, and supports mission-critical, artificial intelligence enabled digital workflow across the insurance economy, including insurers, repairers, automakers, parts suppliers, lenders and more. It offers CCC insurance solutions, including CCC workflow, CCC estimating, CCC total loss, CCC casualty, CCC subrogation, and CCC claim handling; CCC repair solutions, such as CCC network management, CCC repair workflow, and CCC repair quality; CCC other ecosystem solutions, which includes CCC parts solutions, CCC automotive manufacturer solutions, CCC diagnostics service provider solutions, and CCC payments; and CCC international solutions. The company was founded in 1980 and is headquartered in Chicago, Illinois.

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.