Reviewing Porch Group (NASDAQ:PRCH) & Qumu (NASDAQ:QUMU)

Porch Group (NASDAQ:PRCHGet Rating) and Qumu (NASDAQ:QUMUGet Rating) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Profitability

This table compares Porch Group and Qumu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Porch Group -54.23% -56.54% -9.88%
Qumu -58.17% -172.41% -44.17%

Risk & Volatility

Porch Group has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Qumu has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Insider and Institutional Ownership

36.6% of Qumu shares are held by institutional investors. 18.6% of Porch Group shares are held by company insiders. Comparatively, 12.5% of Qumu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Porch Group and Qumu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Porch Group 0 1 8 0 2.89
Qumu 0 1 0 0 2.00

Porch Group presently has a consensus price target of $11.30, suggesting a potential upside of 370.64%. Qumu has a consensus price target of $0.90, suggesting a potential upside of 1.12%. Given Porch Group’s stronger consensus rating and higher probable upside, analysts clearly believe Porch Group is more favorable than Qumu.

Valuation and Earnings

This table compares Porch Group and Qumu’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Porch Group $192.43 million 1.25 -$106.61 million ($1.46) -1.64
Qumu $24.02 million 0.66 -$16.36 million ($0.70) -1.27

Qumu has lower revenue, but higher earnings than Porch Group. Porch Group is trading at a lower price-to-earnings ratio than Qumu, indicating that it is currently the more affordable of the two stocks.

Summary

Porch Group beats Qumu on 9 of the 14 factors compared between the two stocks.

About Porch Group

(Get Rating)

Porch Group, Inc. operates a software platform in the United States and Canada. The company operates through two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to home services companies and gives early access to homebuyers and homeowners. It offers services to home services companies, such as home inspectors, consumers, such as homebuyers and homeowners, service providers, such as moving, insurance, warranty, and security companies, and TV/Internet providers. This segment operates through Floify, HireAHelper, ISN, iRoofing, Palm-Tech, Porch.com, Rynoh, and V12 brands. The Insurance segment offers property related insurance policies through our own risk-bearing carrier and independent agency as well as risk-bearing home warranty company. This segment operates though American Home Protect, Elite Insurance Group, and Homeowners of America brands. In addition, the company provides property and casualty, home, auto, flood, and umbrella insurance products; and contractor services. The company was incorporated in 2011 and is headquartered in Seattle, Washington.

About Qumu

(Get Rating)

Qumu Corporation provides tools to create, manage, secure, distribute, and measure live and on-demand video content for the enterprises. It offers perpetual software licenses, cloud-hosted software as a service, or term software license basis; and sells third-party hardware appliances, as well as provides maintenance and support, and professional and training services. The company's platform provides video capture services; video content management services, such as creation and editing, analytics, automated workflows, security and access control, and speech search; and extensions and add-ons. It serves the banking, finance and insurance, manufacturing, services and consulting, telecom and technology, and biotech and health care markets, as well as government customers through direct sales and channel partners in North America, Europe, and Asia. The company was formerly known as Rimage Corporation and changed its name to Qumu Corporation in September 2013. Qumu Corporation was founded in 1978 and is headquartered in Minneapolis, Minnesota.

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