Financial Survey: Procore Technologies (NYSE:PCOR) versus Rapid7 (NASDAQ:RPD)

Procore Technologies (NYSE:PCOR) and Rapid7 (NASDAQ:RPD) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Insider and Institutional Ownership

81.1% of Procore Technologies shares are owned by institutional investors. Comparatively, 95.7% of Rapid7 shares are owned by institutional investors. 16.8% of Procore Technologies shares are owned by company insiders. Comparatively, 2.0% of Rapid7 shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Procore Technologies and Rapid7, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procore Technologies	1	2	16	1	2.85
Rapid7	5	17	1	0	1.83

Procore Technologies presently has a consensus target price of $70.47, indicating a potential upside of 15.48%. Rapid7 has a consensus target price of $12.09, indicating a potential downside of 27.73%. Given Procore Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Procore Technologies is more favorable than Rapid7.

Earnings and Valuation

This table compares Procore Technologies and Rapid7″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procore Technologies	$1.42 billion	6.52	-$100.78 million	($0.26)	-234.71
Rapid7	$859.79 million	1.31	$23.38 million	$0.31	53.95

Rapid7 has lower revenue, but higher earnings than Procore Technologies. Procore Technologies is trading at a lower price-to-earnings ratio than Rapid7, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Procore Technologies has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Rapid7 has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares Procore Technologies and Rapid7’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procore Technologies	-2.73%	0.71%	0.41%
Rapid7	2.35%	27.89%	2.66%

Summary

Rapid7 beats Procore Technologies on 8 of the 15 factors compared between the two stocks.

About Procore Technologies

Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Workforce Management, that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time; and Construction Intelligence, that allows customers to capture, manage, and learn from data for project and portfolio reporting, analytics, and artificial intelligence-guided workflows, as well as to monitor projects and drive informed decision-making for business needs. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.

About Rapid7

Rapid7, Inc. provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions. It also offers various platforms, including Rapid7 managed threat complete consisting of managed detection response that delivers end-to-end threat detection and response, as well as offloads day-to-day vulnerability management operations. In addition, it provides Rapid7 threat complete consisting of InsightIDR, a security information and event management, and extended detection and response solution; and InsightVM, a vulnerability management solution that provides visibility across on-premise and remote endpoints for security teams to evaluate the business risks, and configurations, and share with their IT counterparts for remediation. Further, the company offers Rapid7 cloud risk complete, which includes InsightCloudSec, a cloud risk and compliance management solution; and InsightAppSec, a dynamic application security testing tool. It also provides professional services. It serves a range of industries, including business services, pharmaceuticals, technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, travel and transportation, government, online services, telecommunications, and professional services. The company was incorporated in 2000 and is headquartered in Boston, Massachusetts.