Contrasting Net Medical Xpress Solutions (OTCMKTS:NMXS) & Red Violet (NASDAQ:RDVT)

Red Violet (NASDAQ:RDVT) and Net Medical Xpress Solutions (OTCMKTS:NMXS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Earnings & Valuation

This table compares Red Violet and Net Medical Xpress Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$75.19 million	9.51	$7.00 million	$0.60	85.27
Net Medical Xpress Solutions	N/A	N/A	N/A	N/A	N/A

Red Violet has higher revenue and earnings than Net Medical Xpress Solutions.

Insider and Institutional Ownership

63.6% of Red Violet shares are held by institutional investors. 8.9% of Red Violet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Red Violet and Net Medical Xpress Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	1	1	0	2.50
Net Medical Xpress Solutions	0	0	0	0	0.00

Red Violet presently has a consensus price target of $60.00, suggesting a potential upside of 17.28%. Given Red Violet’s stronger consensus rating and higher possible upside, research analysts clearly believe Red Violet is more favorable than Net Medical Xpress Solutions.

Risk and Volatility

Red Violet has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Net Medical Xpress Solutions has a beta of -1.56, meaning that its stock price is 256% less volatile than the S&P 500.

Profitability

This table compares Red Violet and Net Medical Xpress Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Violet	10.57%	9.89%	9.05%
Net Medical Xpress Solutions	N/A	N/A	N/A

Summary

Red Violet beats Net Medical Xpress Solutions on 10 of the 10 factors compared between the two stocks.

About Red Violet

Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, fraud detection and prevention, customer acquisition, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, telecommunication companies, law enforcement and government agencies, collections, law, corporate security, and investigative firms. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.

About Net Medical Xpress Solutions

Net Medical Xpress Solutions, Inc. provides telemedicine solutions for hospitals, nursing homes, specialty hospitals, and other medical facilities. It provides services in the areas, such as teleneurology, teleneurosurgery, telecardiology, teleorthopedics, telewoundcare, and telenephrology. The company offers a Telemed telemedicine platform, a system used to build a customized telemedicine management system for clients; digital paper, development engine, single pane of glass software, FDA cleared image viewers, and integration connectivity with approximately 43 hospitals based EMR systems; and telemedicine video conferencing equipment and USB clinical tools. It also provides physicians; administrative services, such as credentialing, program management, and call center management; and integration services, including electronic prescription software, prior authorization software, laboratory and malpractice insurance, large scale provider scheduling, medical translation, and rounding services. In addition, the company offers staffing and recruiting services, and diagnostic and clinical services, as well as amazon cloud services. The company was formerly known as New Mexico Software, Inc. and changed its name to Net Medical Xpress Solutions, Inc. in January 2013. Net Medical Xpress Solutions, Inc. was founded in 1995 and is based in Albuquerque, New Mexico.