Rapid7 (NASDAQ:RPD) and Definitive Healthcare (NASDAQ:DH) Critical Contrast

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Rapid7 (NASDAQ:RPD – Get Rating) and Definitive Healthcare (NASDAQ:DH – Get Rating) are both IT and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rapid7 and Definitive Healthcare, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Quick7 0 3 13 0 2.81
Final health care 0 6 6 0 2.50

Rapid7 currently has a consensus target price of $129.07, indicating 94.58% upside potential. Definitive Healthcare has a consensus target price of $36.10, indicating a potential upside of 95.03%. Given Definitive Healthcare’s likely higher upside, analysts clearly believe Definitive Healthcare is more favorable than Rapid7.

Profitability

This table compares the net margins, return on equity and return on assets of Rapid7 and Definitive Healthcare.

Net margins Return on equity return on assets
Quick7 -28.07% N / A -9.60%
Final health care N / A 0.83% 0.58%

Institutional and insider ownership

98.0% of Rapid7 shares are held by institutional investors. By comparison, 99.4% of Definitive Healthcare’s shares are held by institutional investors. 3.6% of Rapid7 shares are held by insiders. By comparison, 17.5% of Definitive Healthcare’s stock is held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a company will outperform the market over the long term.

Valuation and benefits

This table compares the gross revenue, earnings per share (EPS), and valuation of Rapid7 and Definitive Healthcare.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Quick7 $535.40 million 7.22 -$146.33 million ($2.86) -23.19
Final health care $166.15 million 10.87 -$51.02 million N / A N / A

Definitive Healthcare has lower earnings, but higher earnings than Rapid7.

Summary

Definitive Healthcare beats Rapid7 on 8 out of 11 factors compared between the two stocks.

Rapid7 Company Profile (Get a rating)

Rapid7, Inc. provides cybersecurity solutions. The company offers a cloud-native information platform that enables customers to create and manage analytics-based cybersecurity risk management programs. Its platform includes InsightIDR, an incident detection and response solution; InsightCloudSec, a solution that integrates posture management, workload protection, infrastructure entitlement management, infrastructure-as-code security, and Kubernetes protection; InsightVM, a vulnerability risk management solution designed to provide a way to collect vulnerability data, prioritize risk, and automate remediation; InsightAppSec, which provides application security testing that scans web applications for security vulnerabilities; and InsightConnect, a security orchestration and automated response solution used by security professionals. The company’s other products include DivvyCloud, a cloud-based security posture management solution; Nexpose, an on-premises version of the enterprise’s vulnerability risk management solution; AppSpider, an on-premises version of the company’s application security testing solution; and Metasploit, a penetration testing software solution, as well as professional services. It offers its products through term or perpetual software licenses, cloud-based subscriptions and managed services. The company serves customers in a range of industries, including technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, transportation, government, and professional services through sales and indirect teams. relationships with distribution partners, as well as directly in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The company was incorporated in 2000 and is based in Boston, Massachusetts.

Definitive Healthcare Business Profile (Get a rating)

Definitive healthcare logoDefinitive Healthcare Corp., together with its subsidiaries, provides healthcare business information in the United States. Its solutions provide insights into healthcare providers and their businesses to help its customers in areas ranging from product development and go-to-market planning, to sales and marketing execution. The company’s platform offers 16 intelligence modules covering functional areas such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies and healthcare providers; and other diversified companies including staffing and commercial real estate companies, financial institutions and other healthcare ecosystem organizations. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.



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