New Relic (NEWR) versus Hortonworks (HDP) Critical Comparison

New Relic (NYSE: NEWR) and Hortonworks (NASDAQ:HDP) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Volatility & Risk

How to Become a New Pot Stock Millionaire

New Relic has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Hortonworks has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Insider and Institutional Ownership

75.8% of New Relic shares are held by institutional investors. Comparatively, 61.6% of Hortonworks shares are held by institutional investors. 23.1% of New Relic shares are held by company insiders. Comparatively, 22.5% of Hortonworks 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 Ratings

This is a breakdown of current recommendations and price targets for New Relic and Hortonworks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 0 5 8 0 2.62
Hortonworks 0 5 10 0 2.67

New Relic presently has a consensus target price of $65.38, indicating a potential downside of 10.36%. Hortonworks has a consensus target price of $22.31, indicating a potential upside of 26.03%. Given Hortonworks’ stronger consensus rating and higher possible upside, analysts clearly believe Hortonworks is more favorable than New Relic.

Profitability

This table compares New Relic and Hortonworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Relic -16.17% -25.22% -13.61%
Hortonworks -78.11% N/A -90.70%

Valuation and Earnings

This table compares New Relic and Hortonworks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Relic $263.48 million 15.35 -$61.07 million ($1.10) -66.31
Hortonworks $261.81 million 5.27 -$204.50 million ($3.06) -5.78

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

Summary

New Relic beats Hortonworks on 8 of the 14 factors compared between the two stocks.

New Relic Company Profile

New Relic, Inc., a software-as-a-service company, provides digital intelligence products worldwide. The company's cloud-based platform and suite of products include New Relic Digital Intelligence Platform, which enables organizations to collect, store, and analyze data. It provides New Relic Application Performance Management that offers visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser, a product that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications. The company also offers New Relic Synthetics, which simulates usage and reproduces business-critical functionality that enables its users to test their software throughout the development life cycle; and New Relic Infrastructure that provides information technology operation teams with the visibility into the health performance of their infrastructure. In addition, it provides New Relic Insights that enables technology and business users to perform real-time analysis; New Relic Alerts, a centralized notification system for managing alert policies and alert conditions; New Relic Plugins, which offers a plugin architecture, including application programming interfaces and software development kits for customers and partners to embed and extend its solution into their products; and real-time dashboards for tracking business metrics from a set of application sources, as well as live-state server configuration monitoring across cloud infrastructure. The company sells its products through direct sales organizations, online and offline sales, and marketing activities. New Relic, Inc. was founded in 2007 and is headquartered in San Francisco, California.

Hortonworks Company Profile

Hortonworks, Inc. provides data management platforms, services, and solutions in North America, the Asia Pacific, Europe, and Latin America. It offers Hortonworks Data Platform (HDP), an enterprise-scale data management platform which provides a platform for multi-workload data processing; Hortonworks DataFlow, a data-in-motion platform to automate and secure Internet of anything data flows, as well as to collect, conduct, and curate real-time business insights and actions derived from data in motion, including sensors, machines, geolocation devices, clicks, server logs, and social feeds; and Hortonworks DataPlane Service simplifies managing, securing, governing, provisioning, and consuming distributed data systems. The company also provides Azure HDInsight, a data cloud service that provides customers flexible big data environments on the Azure cloud; Hortonworks Data Cloud for Amazon Web Services, a big data cloud service for analyzing and processing data, and enabling businesses to achieve insights quickly and with flexibility; Hortonworks Cybersecurity Platform (HCP) offers view of business risk through a security lens; and Hortonworks Sandbox, a personal, portable, and free to use Hadoop environment designed to offer the easiest way to get started with HDP or HDF. In addition, it offers support subscription, consulting, and education services. Further, the company's connected data platforms are primarily provided under the Apache open source license with rights to use, copy, modify, and redistribute the software. It sells its products through direct sales team and reseller partners. Hortonworks, Inc. was founded in 2011 and is headquartered in Santa Clara, California.

Receive News & Ratings for New Relic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for New Relic and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply