Iclick Interactive Asia Group (NASDAQ:ICLK) versus AppFolio (NASDAQ:APPF) Critical Review

Iclick Interactive Asia Group (NASDAQ:ICLK) and AppFolio (NASDAQ:APPF) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Earnings and Valuation

This table compares Iclick Interactive Asia Group and AppFolio’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iclick Interactive Asia Group $160.02 million 1.24 -$32.41 million ($0.09) -41.11
AppFolio $190.07 million 19.05 $19.97 million $0.56 190.11

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

Volatility and Risk

Iclick Interactive Asia Group has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, AppFolio has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

0.7% of Iclick Interactive Asia Group shares are held by institutional investors. Comparatively, 31.2% of AppFolio shares are held by institutional investors. 42.5% of AppFolio shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Iclick Interactive Asia Group and AppFolio, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iclick Interactive Asia Group 0 0 0 0 N/A
AppFolio 1 1 1 0 2.00

AppFolio has a consensus target price of $77.50, indicating a potential downside of 27.20%. Given AppFolio’s higher probable upside, analysts clearly believe AppFolio is more favorable than Iclick Interactive Asia Group.

Profitability

This table compares Iclick Interactive Asia Group and AppFolio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iclick Interactive Asia Group -20.99% -3.76% -2.04%
AppFolio 9.46% 19.56% 12.18%

Summary

AppFolio beats Iclick Interactive Asia Group on 12 of the 13 factors compared between the two stocks.

About Iclick Interactive Asia Group

iClick Interactive Asia Group Limited, together with its subsidiaries, provides online marketing services in the People's Republic of China, Hong Kong, and internationally. The company offers mobile audience solutions, which are non-search engine marketing solutions designed to identify, engage, and activate audience on mobile apps, and monitor and measure the results of online marketing activities on such channels; and other solutions that focuses on identifying, engaging, and activating audience on non-mobile app content distribution channels comprising PC banner displays, PC video advertisements, and search engine marketing. It sells its solutions by entering into marketing campaign contracts with marketers or marketing agencies. The company was formerly known as Optimix Media Asia Limited and changed its name to iClick Interactive Asia Group Limited in March 2017. iClick Interactive Asia Group Limited was founded in 2009 and is headquartered in Quarry Bay, Hong Kong.

About AppFolio

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.

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