Reviewing Duos Technologies Group (OTCMKTS:DUOT) and AppFolio (NASDAQ:APPF)

Duos Technologies Group (OTCMKTS:DUOT) and AppFolio (NASDAQ:APPF) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Risk & Volatility

Duos Technologies Group has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, AppFolio has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

42.6% of Duos Technologies Group shares are owned by institutional investors. Comparatively, 62.3% of AppFolio shares are owned by institutional investors. 4.3% of Duos Technologies Group shares are owned by company insiders. Comparatively, 9.2% of AppFolio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Duos Technologies Group and AppFolio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duos Technologies Group	-55.74%	-183.68%	-57.40%
AppFolio	17.32%	27.39%	20.41%

Analyst Recommendations

This is a summary of current recommendations and price targets for Duos Technologies Group and AppFolio, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duos Technologies Group	0	0	0	0	N/A
AppFolio	1	0	7	0	2.75

AppFolio has a consensus target price of $272.13, indicating a potential upside of 33.83%. Given AppFolio’s higher probable upside, analysts plainly believe AppFolio is more favorable than Duos Technologies Group.

Earnings and Valuation

This table compares Duos Technologies Group and AppFolio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duos Technologies Group	$5.64 million	5.53	-$6.86 million	($1.65)	-2.51
AppFolio	$722.08 million	10.20	$2.70 million	$2.07	98.23

AppFolio has higher revenue and earnings than Duos Technologies Group. Duos Technologies Group is trading at a lower price-to-earnings ratio than AppFolio, indicating that it is currently the more affordable of the two stocks.

Summary

AppFolio beats Duos Technologies Group on 12 of the 13 factors compared between the two stocks.

About Duos Technologies Group

Duos Technologies Group, Inc., through its subsidiary, Duos Technologies, Inc. designs and deploys artificial intelligence driven intelligent technologies systems in the United States. Its technology platforms include Praesidium, an integrated suite of analytics applications, which process and analyze data streams from virtually conventional or specialized sensors, and/or data points; and Centraco, a user interface that includes a physical security information management system. The company offers intelligent technology solutions for critical infrastructure, including Intelligent Rail Inspection Portal, Tunnel and Bridge Security, Virtual Security Shield, Facility Safety and Security, Remote Bridge Operation, Pantograph Inspection System, Vehicle Undercarriage Examiner for security and mechanical inspection, Multi-Layered Enterprise Command and Control Interface, Neural Network Modeling for detection algorithms, Automated Retail Facility Logistics, and Transit Rail Platform Analytics. It also provides engineered solutions. In addition, the company offers proprietary and turnkey systems and applications, such as rip, an intelligent rail inspection portal comprising various modules for automated analysis, detection, and inspection at rail border crossings. Further, it provides IT asset management that includes infrastructure and device audit services for various data centers. The company offers its solutions to various industries, which comprise transportation, healthcare, retail, law enforcement, oil and gas, and utilities sectors, as well as commercial railways. Duos Technologies Group, Inc. was founded in 1990 and is headquartered in Jacksonville, Florida. Duos Technologies Group, Inc. is a subsidiary of Environmental Capital Holdings, Inc.

About AppFolio

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions. The company also provides value-added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.