Contrasting SolarWinds (SWI) & RealPage (RP)

SolarWinds (NYSE: SWI) and RealPage (NASDAQ:RP) are both mid-cap enterprise software companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk & Volatility

SolarWinds has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, RealPage has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Valuation & Earnings

This table compares SolarWinds and RealPage’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
SolarWinds N/A N/A N/A $1.18 50.83
RealPage $568.13 million 6.49 $16.65 million $0.35 127.43

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

Analyst Ratings

This is a breakdown of current recommendations for SolarWinds and RealPage, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SolarWinds 0 0 0 0 N/A
RealPage 1 1 5 0 2.57

RealPage has a consensus target price of $43.14, suggesting a potential downside of 3.27%. Given RealPage’s higher possible upside, analysts plainly believe RealPage is more favorable than SolarWinds.

Profitability

This table compares SolarWinds and RealPage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SolarWinds 20.52% 19.24% 12.70%
RealPage 4.52% 9.89% 4.58%

Insider and Institutional Ownership

70.6% of RealPage shares are owned by institutional investors. 33.2% of RealPage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

SolarWinds Company Profile

SolarWinds, Inc. (SolarWinds) is a holding company. The Company designs, develops, markets, sells and supports enterprise-class information technology (IT), infrastructure management software to IT and DevOps professionals in organizations of all sizes. Its products categories include network management, which is used to monitor and manage the performance of network infrastructure; systems management, which is used to monitor and manage the performance of applications, physical and virtual servers, storage and databases; MSP, which is used by managed service providers to monitor and manage the IT infrastructure of their end clients, SMBs, and cloud, its cloud-based products, which are used to monitor and manage applications and application infrastructure. Its customers include small- and mid-size businesses, enterprises, MSPs, and local, state and federal Government entities.

RealPage Company Profile

RealPage, Inc. is a provider of technology to the real estate industry, helping owners, managers and investors. The Company’s property management solutions are referred to as Enterprise Resource Planning systems. Its on demand platform provides a single point of access and a repository of real-time lease transaction data, including prospect, renter and property data. Its platform consists of four primary categories of solutions: Property Management, Lease Management, Resident Services and Asset Optimization. These solutions provide complementary asset performance and investment decision support; risk mitigation, billing and utility management; resident engagement, spend management, operations and facilities management, and lead generation and lease management capabilities that collectively enable its clients to manage all the stages of the renter life cycle. In addition, its open architecture allows third-party applications to access its solutions using its RealPage Exchange platform.

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