AppFolio (NASDAQ: APPF) and LivePerson (NASDAQ:LPSN) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
Risk and Volatility
AppFolio has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, LivePerson has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
This table compares AppFolio and LivePerson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
27.1% of AppFolio shares are held by institutional investors. Comparatively, 76.5% of LivePerson shares are held by institutional investors. 42.0% of AppFolio shares are held by company insiders. Comparatively, 11.5% of LivePerson shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current recommendations for AppFolio and LivePerson, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AppFolio currently has a consensus target price of $56.00, indicating a potential downside of 26.61%. LivePerson has a consensus target price of $25.50, indicating a potential upside of 6.14%. Given LivePerson’s stronger consensus rating and higher probable upside, analysts clearly believe LivePerson is more favorable than AppFolio.
Earnings & Valuation
This table compares AppFolio and LivePerson’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AppFolio||$143.80 million||18.16||$9.71 million||$0.28||272.50|
|LivePerson||$218.88 million||6.85||-$18.19 million||($0.06)||-400.42|
AppFolio has higher earnings, but lower revenue than LivePerson. LivePerson is trading at a lower price-to-earnings ratio than AppFolio, indicating that it is currently the more affordable of the two stocks.
AppFolio beats LivePerson on 8 of the 14 factors compared between the two stocks.
AppFolio, Inc. provides industry-specific cloud-based software solutions for small and medium-sized businesses in the property management and legal industries. It offers AppFolio Property Manager, a cloud-based software solution for the real estate market that provides property managers of various sizes and tools and services designed to streamline their property management businesses, such as posting and tracking vacancies, leasing vacant properties, and accounting, as well as facilitating tenant, owner, and vendor communications. The company also provides MyCase, a legal practice and case management solution that provides managing calendars, contacts and documents, time tracking, billing and collections, and communicating with clients and sharing sensitive and privileged materials for solo practitioners and small law firms. In addition, it offers Value+ services, such as its Website design, electronic payment services, tenant screening, insurance, contact center, premium leads, and tenant debt collections services. As of December 31, 2017, the company served 11,708 property manager customers; and 9,349 solo practitioners and small law firms. AppFolio, Inc. was founded in 2006 and is headquartered in Santa Barbara, California.
LivePerson, Inc. provides mobile and online business messaging solutions that power digital communication between brands and consumers. It operates in two segments, Business and Consumer. The Business segment facilitates real-time online interactions, such as chat, voice, and content delivery across multiple channels and screens for corporations of various sizes. The Consumer segment facilitates online transactions between independent service providers and individual consumers seeking information and knowledge via mobile and online messaging. The company offers LiveEngage, an enterprise-class and cloud-based platform, which enables businesses and consumers to connect through conversational interfaces. It also provides professional services and value-added business consulting services. The company sells its products through direct and indirect sales channels to Fortune 500 companies, Internet businesses, online merchants, small to medium-sized businesses, automotive dealers, universities, libraries, government agencies, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, and Asia-Pacific regions. LivePerson, Inc. was founded in 1995 and is headquartered in New York, New York.
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