DealerTrack Technologies (NASDAQ: TRAK) and AppFolio (NASDAQ:APPF) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares DealerTrack Technologies and AppFolio’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DealerTrack Technologies N/A N/A N/A N/A N/A
AppFolio $124.18 million 11.10 $4.64 million $0.03 1,355.45

AppFolio has higher revenue and earnings than DealerTrack Technologies.

Insider and Institutional Ownership

17.7% of AppFolio shares are held by institutional investors. 44.8% of AppFolio shares are held by company 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 DealerTrack Technologies and AppFolio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DealerTrack Technologies -3.45% -3.48% -1.59%
AppFolio 0.84% 1.46% 1.12%

Analyst Ratings

This is a breakdown of current ratings and target prices for DealerTrack Technologies and AppFolio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DealerTrack Technologies 0 0 0 0 N/A
AppFolio 0 3 2 0 2.40

AppFolio has a consensus price target of $36.50, suggesting a potential downside of 10.21%. Given AppFolio’s higher possible upside, analysts plainly believe AppFolio is more favorable than DealerTrack Technologies.

Summary

AppFolio beats DealerTrack Technologies on 8 of the 8 factors compared between the two stocks.

DealerTrack Technologies Company Profile

Dealertrack Technologies, Inc. provides Web-based software solutions and services. The Company provides solutions and services for segments of the automotive retail industry, including dealers, lenders, original equipment manufacturers (OEMs), third-party retailers, aftermarket providers and other service providers. Dealertrack operates the online credit application networks in the United States and Canada. The Company’s solutions includes Digital Marketing solutions, Dealer Management solutions, F&I solutions, Inventory solutions, Registration & Titling solutions, and Collateral Management solutions. Digital Marketing solutions include digital marketing tools, such as desktop and mobile Website design, search engine optimization (SEO), search engine marketing (SEM), social media and reputation management tools. Registration & Titling solutions include online and cross-state vehicle registration services.

AppFolio Company Profile

AppFolio, Inc. is a provider of industry-specific, cloud-based software solutions for small and medium-sized businesses (SMBs) in the property management and legal industries. The Company’s mobile-optimized software solutions enable its customers to work at any time and from anywhere across multiple devices. Its property management software provides small and medium-sized property managers with an end-to-end solution to their business needs. The Company’s legal software provides solo practitioners and small law firms with a streamlined practice and case management solution, allowing them to manage their practices and case load. It also offers Value+ services, such as its professionally designed Websites and electronic payment services. The Company’s property manager customers include third-party managers and owner-operators, managing single- and multi-family residences, commercial property and student housing, as well as mixed real estate portfolios.

Receive News & Stock Ratings for DealerTrack Technologies Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DealerTrack Technologies Inc and related stocks with our FREE daily email newsletter.