Reviewing Red Violet (NASDAQ:RDVT) and HeartCore Enterprises (NASDAQ:HTCR)

Institutional & Insider Ownership

1.7% of HeartCore Enterprises shares are owned by institutional investors. Comparatively, 63.6% of Red Violet shares are owned by institutional investors. 64.2% of HeartCore Enterprises shares are owned by insiders. Comparatively, 8.9% of Red Violet shares are owned by 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.

Volatility & Risk

HeartCore Enterprises has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Red Violet has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HeartCore Enterprises	-11.18%	76.78%	23.06%
Red Violet	10.87%	10.01%	9.21%

Valuation and Earnings

This table compares HeartCore Enterprises and Red Violet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartCore Enterprises	$30.41 million	0.32	-$1.48 million	($0.14)	-3.19
Red Violet	$75.19 million	9.38	$7.00 million	$0.61	82.84

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

Summary

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

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also operates a digital transformation business that offers customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. In addition, it provides consulting services; and education, services, and support solutions. The company was founded in 2009 and is headquartered in Tokyo, Japan.

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.