Reviewing Red Violet (NASDAQ:RDVT) and Tyler Technologies (NYSE:TYL)

Red Violet (NASDAQ:RDVT) and Tyler Technologies (NYSE:TYL) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider and Institutional Ownership

63.6% of Red Violet shares are owned by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are owned by institutional investors. 8.9% of Red Violet shares are owned by insiders. Comparatively, 1.1% of Tyler Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Red Violet and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Violet	10.87%	10.01%	9.21%
Tyler Technologies	13.23%	10.29%	6.78%

Valuation and Earnings

This table compares Red Violet and Tyler Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$75.19 million	9.33	$7.00 million	$0.61	82.37
Tyler Technologies	$2.14 billion	11.91	$263.03 million	$6.64	88.93

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

Risk and Volatility

Red Violet has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Red Violet and Tyler Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	0	0	0	0.00
Tyler Technologies	0	4	9	0	2.69

Tyler Technologies has a consensus price target of $680.50, suggesting a potential upside of 15.25%. Given Tyler Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Tyler Technologies is more favorable than Red Violet.

Summary

Tyler Technologies beats Red Violet on 11 of the 14 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 Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.