Head-To-Head Analysis: Code Rebel (OTCMKTS:CDRBQ) vs. Red Cat (NASDAQ:RCAT)

Code Rebel (OTCMKTS:CDRBQ) and Red Cat (NASDAQ:RCAT) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Code Rebel and Red Cat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Code Rebel	N/A	N/A	N/A
Red Cat	-162.50%	-66.19%	-58.99%

Earnings & Valuation

This table compares Code Rebel and Red Cat”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Code Rebel	N/A	N/A	N/A	N/A	N/A
Red Cat	$18.86 million	11.97	-$24.05 million	($0.52)	-5.85

Code Rebel has higher earnings, but lower revenue than Red Cat.

Institutional and Insider Ownership

38.0% of Red Cat shares are held by institutional investors. 30.5% of Red Cat shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Code Rebel has a beta of -16.58, meaning that its share price is 1,758% less volatile than the S&P 500. Comparatively, Red Cat has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Code Rebel and Red Cat, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Code Rebel	0	0	0	0	N/A
Red Cat	0	0	1	0	3.00

Red Cat has a consensus price target of $4.00, indicating a potential upside of 31.58%. Given Red Cat’s higher possible upside, analysts clearly believe Red Cat is more favorable than Code Rebel.

Summary

Red Cat beats Code Rebel on 6 of the 9 factors compared between the two stocks.

About Code Rebel

Code Rebel Corporation operates as a software and information technology (IT) services company. It operates in two segments, Software and IT Services. The Software segment develops, markets, and licenses interactive remote application terminal services solution (iRAPP). The iRAPP allows personal computers users to use applications on a single Mac remote desktop simultaneously via the iRAPP client or any standard compliant remote desktop protocol client. This segment offers iRAPP client-side products for Mac OS X and Windows applications; iRAPP terminal server products, including iRAPP-single-user remote desktop and iRAPP-TS multiple-user terminal server for Mac OS X applications; and iRAPP access products, such as iRAPP Load Balancer and iRAPP Gateway. The IT Services segment provides Independent Software Vendor relationships (ISVs)/channel partner platforms, which provide project management, application, and technical consulting, as well as database administration for implementing projects and managed-services engagements; and professional services consulting that implements, upgrades, and maintains software packages those ISVs offer to their clients. Code Rebel Corporation was founded in 2007 and is based in Kahului, Hawaii.

About Red Cat

Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.