SolarWinds (NYSE:SWI) and Debt Resolve (OTCMKTS:DRSV) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Valuation & Earnings

This table compares SolarWinds and Debt Resolve’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SolarWinds $833.09 million 7.08 -$102.07 million $0.57 33.39
Debt Resolve $4.43 million 0.07 -$1.77 million N/A N/A

Debt Resolve has lower revenue, but higher earnings than SolarWinds.

Insider & Institutional Ownership

95.8% of SolarWinds shares are owned by institutional investors. Comparatively, 0.2% of Debt Resolve shares are owned by institutional investors. 1.6% of SolarWinds shares are owned by insiders. Comparatively, 56.1% of Debt Resolve shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for SolarWinds and Debt Resolve, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SolarWinds 2 3 10 0 2.53
Debt Resolve 0 0 0 0 N/A

SolarWinds currently has a consensus price target of $19.32, indicating a potential upside of 1.53%. Given SolarWinds’ higher possible upside, equities research analysts clearly believe SolarWinds is more favorable than Debt Resolve.

Profitability

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

Net Margins Return on Equity Return on Assets
SolarWinds 67.62% 8.56% 4.19%
Debt Resolve N/A N/A N/A

Summary

SolarWinds beats Debt Resolve on 8 of the 10 factors compared between the two stocks.

SolarWinds Company Profile

SolarWinds Corporation provides information technology (IT) infrastructure management software products in the United States and internationally. It offers products to monitor and manage network, system, desktop, application, storage, and database and Website infrastructures, whether on-premise, in the public or private cloud, or in a hybrid IT infrastructure. The company provides a suite of network management software that provides real-time visibility into network utilization and bandwidth, as well as the ability to detect, diagnose, and resolve network performance problems; and a suite of system management products, which monitor and analyze the performance of applications and their supporting infrastructure. It also offers cloud-based monitoring of the full IT stack whether deployed in the cloud or on-premise; and AppOptics, which integrates application performance, server infrastructure monitoring, and custom metrics into one unified cloud-based solution. Its cloud management products enable visibility into log data, cloud infrastructure metrics, applications, tracing, and Web performance management. In addition, the company provides IT service management solutions to enable managed service providers (MSPs) to deliver outsourced IT services and manage their own businesses. Its remote monitoring and management software, which monitors desktops, laptops, servers, and mobile devices across operating systems and platforms. Further, it offers an email protection and archiving platform on a standalone basis that protects businesses from phishing, malware, and other email-borne threats. The company markets and sells its products directly to network and systems engineers, database administrators, storage administrators, DevOps professionals, and managed service providers. The company was formerly known as SolarWinds Parent, Inc. and changed its name to SolarWinds Corporation in May 2018. SolarWinds Corporation was founded in 1999 and is headquartered in Austin, Texas.

Debt Resolve Company Profile

Debt Resolve, Inc. provides software solutions to consumer lenders or those collecting consumer loans using Software-as-a-Service model in the United States. Its solutions facilitate Web-based payments or the resolution of delinquent or defaulted consumer debt. The company also provides services in the student loan document preparation industry. It serves consumer banks, collection agencies, and the buyers of defaulted debt. The company was formerly known as Lombardia Acquisition Corp. and changed its name to Debt Resolve, Inc. in May 2003. Debt Resolve, Inc. was founded in 1997 and is based in Hawthorne, New York.

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