Reviewing Gartner (NYSE:IT) & Red Violet (NASDAQ:RDVT)

Red Violet (NASDAQ:RDVT) and Gartner (NYSE:IT) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

Red Violet has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Gartner has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

63.6% of Red Violet shares are owned by institutional investors. Comparatively, 91.5% of Gartner shares are owned by institutional investors. 8.9% of Red Violet shares are owned by insiders. Comparatively, 2.6% of Gartner shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Red Violet and Gartner, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	0	5	1	3.17
Gartner	1	8	2	0	2.09

Red Violet currently has a consensus price target of $83.50, indicating a potential upside of 4.15%. Gartner has a consensus price target of $189.00, indicating a potential downside of 2.67%. Given Red Violet’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Red Violet is more favorable than Gartner.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Red Violet	16.54%	16.12%	14.77%
Gartner	11.99%	525.46%	13.45%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$90.25 million	14.26	$13.15 million	$1.12	71.58
Gartner	$6.46 billion	1.90	$729.23 million	$11.15	17.42

Gartner has higher revenue and earnings than Red Violet. Gartner 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 Gartner on 10 of the 15 factors compared between the two stocks.

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.

About Gartner

Gartner, Inc. operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts. The Conferences segment offers executives and teams in an organization the opportunity to learn, share, and network. The Consulting segment offers market-leading research, custom analysis, and on-the-ground support services. This segment also offers actionable solutions for IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization. Gartner, Inc. was founded in 1979 and is headquartered in Stamford, Connecticut.