Comparing New Relic (NYSE:NEWR) and Link Motion (NYSE:LKM)

New Relic (NYSE:NEWR) and Link Motion (NYSE:LKM) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Insider & Institutional Ownership

78.7% of New Relic shares are held by institutional investors. Comparatively, 0.2% of Link Motion shares are held by institutional investors. 20.4% of New Relic shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for New Relic and Link Motion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 1 2 9 1 2.77
Link Motion 0 0 0 0 N/A

New Relic presently has a consensus price target of $114.82, suggesting a potential upside of 30.77%. Given New Relic’s higher probable upside, research analysts clearly believe New Relic is more favorable than Link Motion.

Profitability

This table compares New Relic and Link Motion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Relic -8.53% -6.57% -2.15%
Link Motion N/A N/A N/A

Earnings & Valuation

This table compares New Relic and Link Motion’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Relic $479.23 million 10.65 -$40.89 million ($0.31) -283.23
Link Motion $57.61 million 0.26 -$27.12 million N/A N/A

Link Motion has lower revenue, but higher earnings than New Relic.

Summary

New Relic beats Link Motion on 7 of the 11 factors compared between the two stocks.

About New Relic

New Relic, Inc., a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications. It also provides New Relic Synthetics, which simulates usage and reproduces business-critical functionality that enables its users to test their software throughout the entire development life cycle; New Relic Infrastructure that provides a view of the health and configuration changes for an enterprise's entire host ecosystem across various environments; and New Relic Insights that enables technology and business users to perform real-time analysis. In addition, the company offers New Relic Applied Intelligence platform; New Relic's alerting platform, a centralized notification system that delivers alerts from across the products that make up the New Relic Platform; and New Relic's plugins architecture, which offers a plugin architecture, including application programming interfaces and software development kits for customers and partners to embed and extend its solution into their products. The company sells its products through direct sales organizations, online and offline sales, and marketing activities. New Relic, Inc. was founded in 2007 and is headquartered in San Francisco, California.

About Link Motion

Link Motion Inc. operates as a smart car and smart ride company in the People's Republic of China and internationally. Its offerings include enabling technology solutions and secure connected carputers for the ecosystem of car businesses; and consumer ride sharing services, as well as mobile security, productivity, and other related applications. The company was formerly known as NQ Mobile Inc. and changed its name to Link Motion Inc. in March 2018. Link Motion Inc. was founded in 2005 and is based in Beijing, the People's Republic of China.

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