Katapult (NASDAQ:KPLT) vs. Real Messenger (NASDAQ:RMSG) Critical Review

Real Messenger (NASDAQ:RMSG) and Katapult (NASDAQ:KPLT) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Volatility & Risk

Real Messenger has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Katapult has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Profitability

This table compares Real Messenger and Katapult’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Real Messenger	N/A	N/A	N/A
Katapult	2.48%	-16.24%	7.63%

Insider and Institutional Ownership

37.4% of Real Messenger shares are held by institutional investors. Comparatively, 26.8% of Katapult shares are held by institutional investors. 46.6% of Real Messenger shares are held by insiders. Comparatively, 8.0% of Katapult shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Real Messenger and Katapult”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Messenger	N/A	N/A	-$3.38 million	($0.01)	-36.86
Katapult	$291.76 million	0.11	$1.37 million	$1.15	5.98

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

Analyst Ratings

This is a breakdown of current ratings for Real Messenger and Katapult, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Messenger	0	0	0	0	0.00
Katapult	1	1	0	0	1.50

Katapult has a consensus price target of $10.00, indicating a potential upside of 45.35%. Given Katapult’s stronger consensus rating and higher probable upside, analysts clearly believe Katapult is more favorable than Real Messenger.

Summary

Katapult beats Real Messenger on 9 of the 12 factors compared between the two stocks.

About Real Messenger

Real Messenger Holdings Limited is a real estate technology platform. The company is transforming real estate engagement by connecting agents, buyers, sellers and other industry participants within a unified, social platform. Real Messenger Holdings Limited, formerly known as Nova Vision Acquisition Corp., is based in COSTA MESA, Calif.

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.