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

Institutional and Insider Ownership

70.1% of RealPage shares are owned by institutional investors. Comparatively, 94.4% of HubSpot shares are owned by institutional investors. 33.2% of RealPage shares are owned by company insiders. Comparatively, 12.1% of HubSpot shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

RealPage has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, HubSpot has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealPage 0 1 5 0 2.83
HubSpot 0 2 16 0 2.89

RealPage presently has a consensus target price of $46.33, suggesting a potential upside of 5.18%. HubSpot has a consensus target price of $82.93, suggesting a potential upside of 3.54%. Given RealPage’s higher possible upside, analysts clearly believe RealPage is more favorable than HubSpot.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
RealPage $568.13 million 6.43 $16.65 million $0.35 125.86
HubSpot $270.97 million 11.05 -$45.56 million ($1.16) -69.05

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

Profitability

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

Net Margins Return on Equity Return on Assets
RealPage 4.52% 9.51% 4.25%
HubSpot -12.16% -21.93% -7.61%

Summary

RealPage beats HubSpot on 8 of the 13 factors compared between the two stocks.

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.

HubSpot Company Profile

HubSpot, Inc. (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting. The Company’s products include HubSpot Marketing, HubSpot CRM and HubSpot Sales. The Company offers Professional Services and support. It offers professional services to educate and train customers on how to leverage its software platform and inbound marketing methodology to transform how their business attracts, engages and delights customers.

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