Contrasting Net Medical Xpress Solutions (OTCMKTS:NMXS) & Red Violet (NASDAQ:RDVT)

Net Medical Xpress Solutions (OTCMKTS:NMXS) and Red Violet (NASDAQ:RDVT) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

63.6% of Red Violet shares are held by institutional investors. 8.9% of Red Violet shares are held 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

Net Medical Xpress Solutions has a beta of -1.56, suggesting that its share price is 256% less 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 Net Medical Xpress Solutions and Red Violet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Net Medical Xpress Solutions	N/A	N/A	N/A
Red Violet	10.57%	9.89%	9.05%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Net Medical Xpress Solutions and Red Violet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Net Medical Xpress Solutions	0	0	0	0	0.00
Red Violet	0	1	2	0	2.67

Red Violet has a consensus target price of $61.00, indicating a potential downside of 0.85%. Given Red Violet’s stronger consensus rating and higher possible upside, analysts clearly believe Red Violet is more favorable than Net Medical Xpress Solutions.

Earnings and Valuation

This table compares Net Medical Xpress Solutions and Red Violet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Net Medical Xpress Solutions	N/A	N/A	N/A	N/A	N/A
Red Violet	$82.40 million	10.44	$7.00 million	$0.60	102.54

Red Violet has higher revenue and earnings than Net Medical Xpress Solutions.

Summary

Red Violet beats Net Medical Xpress Solutions on 10 of the 10 factors compared between the two stocks.

About Net Medical Xpress Solutions

Net Medical Xpress Solutions, Inc. provides telemedicine solutions for hospitals, nursing homes, specialty hospitals, and other medical facilities. It provides services in the areas, such as teleneurology, teleneurosurgery, telecardiology, teleorthopedics, telewoundcare, and telenephrology. The company offers a Telemed telemedicine platform, a system used to build a customized telemedicine management system for clients; digital paper, development engine, single pane of glass software, FDA cleared image viewers, and integration connectivity with approximately 43 hospitals based EMR systems; and telemedicine video conferencing equipment and USB clinical tools. It also provides physicians; administrative services, such as credentialing, program management, and call center management; and integration services, including electronic prescription software, prior authorization software, laboratory and malpractice insurance, large scale provider scheduling, medical translation, and rounding services. In addition, the company offers staffing and recruiting services, and diagnostic and clinical services, as well as amazon cloud services. The company was formerly known as New Mexico Software, Inc. and changed its name to Net Medical Xpress Solutions, Inc. in January 2013. Net Medical Xpress Solutions, Inc. was founded in 1995 and is based in Albuquerque, New Mexico.

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.