RumbleON (RMBL) vs. Mitek Systems (MITK) Financial Analysis

RumbleON (OTCMKTS: RMBL) and Mitek Systems (NASDAQ:MITK) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares RumbleON and Mitek Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RumbleON N/A N/A N/A
Mitek Systems 18.57% 9.45% 7.83%

Analyst Ratings

This is a breakdown of current ratings for RumbleON and Mitek Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RumbleON 0 0 2 0 3.00
Mitek Systems 0 0 3 0 3.00

RumbleON currently has a consensus price target of $7.38, suggesting a potential upside of 96.67%. Mitek Systems has a consensus price target of $11.67, suggesting a potential upside of 45.83%. Given RumbleON’s higher probable upside, analysts plainly believe RumbleON is more favorable than Mitek Systems.

Volatility and Risk

RumbleON has a beta of -17.37, meaning that its share price is 1,837% less volatile than the S&P 500. Comparatively, Mitek Systems has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Institutional and Insider Ownership

46.4% of Mitek Systems shares are held by institutional investors. 7.5% of Mitek Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares RumbleON and Mitek Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RumbleON N/A N/A N/A ($0.58) -6.47
Mitek Systems $45.39 million 6.15 $14.09 million $0.36 22.22

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

Summary

Mitek Systems beats RumbleON on 10 of the 11 factors compared between the two stocks.

RumbleON Company Profile

RumbleON, Inc. (RumbleON), formerly Smart Server Inc., is a development-stage company. The Company focuses on creating an e-commerce platform facilitating the ability of both consumers and dealers to Buy-Sell-Trade-Finance pre-owned recreation vehicles (RV). Serving both consumers and dealers, RumbleON makes such consumers or dealers a cash offer for the purchase of their vehicle. In addition, RumbleON offers an inventory of vehicles for sale on its Website and offers financing and associated products. RumbleON utilizes partner dealers in the acquisition of motorcycles, as well as to provide inspection, reconditioning and distribution services. Its product suite has modules supporting the motorcycle, RV, and marine and auto segments. As of December 31, 2016, the Company had not generated any revenue.

Mitek Systems Company Profile

Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers. The Company’s technology allows users to remotely deposit checks, open accounts, get insurance quotes, pay bills, as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. Its technology uses algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions. Its technology processes images of documents in various ways. The Company’s products include Mobile Verify, Mobile Fill, Mobile Docs, Mobile Deposit and Commercial Mobile Deposit Capture. Its mobile technology solutions are provided in two parts: a software development kit (SDK) for mobile capture, and a software platform for image correction, detection, extraction and authentication.

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