Financial Contrast: Red Violet (NASDAQ:RDVT) and iLearningEngines (NASDAQ:AILE)

iLearningEngines (NASDAQ:AILE) and Red Violet (NASDAQ:RDVT) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

32.9% of iLearningEngines shares are owned by institutional investors. Comparatively, 63.6% of Red Violet shares are owned by institutional investors. 61.5% of iLearningEngines 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, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

iLearningEngines has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for iLearningEngines and Red Violet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iLearningEngines	0	0	2	0	3.00
Red Violet	0	0	1	0	3.00

iLearningEngines presently has a consensus price target of $19.50, indicating a potential upside of 1,007.95%. Red Violet has a consensus price target of $25.00, indicating a potential downside of 14.50%. Given iLearningEngines’ higher possible upside, research analysts plainly believe iLearningEngines is more favorable than Red Violet.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iLearningEngines	$360.77 million	0.66	-$5.85 million	N/A	N/A
Red Violet	$67.47 million	5.95	$13.53 million	$1.02	28.67

Red Violet has lower revenue, but higher earnings than iLearningEngines.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iLearningEngines	N/A	N/A	-6.20%
Red Violet	23.49%	18.99%	17.57%

Summary

Red Violet beats iLearningEngines on 7 of the 11 factors compared between the two stocks.

About iLearningEngines

iLearningEngines, Inc. operates AI-powered learning automation and information intelligence for corporate and educational use. The company's AI and learning automation platform is used by enterprises to productize enterprise knowledge for consumption throughout the enterprise. Its outcome-based training has deployed in regulated and detail-oriented vertical markets, such as healthcare, education, insurance, retail, oil and gas/energy, manufacturing, and government. The company was founded in 2010 and is headquartered in Bethesda, Maryland.

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.