Digital Turbine (NASDAQ:APPS) & AppFolio (NASDAQ:APPF) Financial Comparison

Digital Turbine (NASDAQ:APPS) and AppFolio (NASDAQ:APPF) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

63.7% of Digital Turbine shares are owned by institutional investors. Comparatively, 85.2% of AppFolio shares are owned by institutional investors. 6.1% of Digital Turbine shares are owned by insiders. Comparatively, 1.6% of AppFolio shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Digital Turbine and AppFolio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Turbine	1	0	2	1	2.75
AppFolio	0	1	9	0	2.90

Digital Turbine presently has a consensus price target of $8.75, indicating a potential downside of 10.35%. AppFolio has a consensus price target of $252.29, indicating a potential upside of 56.50%. Given AppFolio’s stronger consensus rating and higher possible upside, analysts clearly believe AppFolio is more favorable than Digital Turbine.

Earnings & Valuation

This table compares Digital Turbine and AppFolio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Turbine	$565.25 million	2.08	-$37.73 million	($0.36)	-27.11
AppFolio	$995.33 million	5.73	$140.92 million	$4.20	38.38

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

Profitability

This table compares Digital Turbine and AppFolio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Turbine	-6.68%	27.60%	5.68%
AppFolio	15.27%	32.35%	25.69%

Volatility and Risk

Digital Turbine has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500. Comparatively, AppFolio has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Summary

AppFolio beats Digital Turbine on 12 of the 15 factors compared between the two stocks.

About Digital Turbine

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.

About AppFolio

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions. The company also provides value-added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.