Analyzing Porch Group (NASDAQ:PRCH) & hopTo (OTCMKTS:HPTO)

Porch Group (NASDAQ:PRCH) and hopTo (OTCMKTS:HPTO) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Porch Group and hopTo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Porch Group	0	2	5	1	2.88
hopTo	0	0	0	0	0.00

Porch Group presently has a consensus target price of $5.34, indicating a potential upside of 15.67%. Given Porch Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Porch Group is more favorable than hopTo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Porch Group	-14.55%	N/A	-10.57%
hopTo	N/A	N/A	N/A

Valuation & Earnings

This table compares Porch Group and hopTo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Porch Group	$430.30 million	1.28	-$133.93 million	($0.70)	-6.60
hopTo	$3.91 million	0.26	$120,000.00	N/A	N/A

hopTo has lower revenue, but higher earnings than Porch Group.

Insider and Institutional Ownership

48.5% of Porch Group shares are owned by institutional investors. 23.5% of Porch Group shares are owned by insiders. Comparatively, 46.0% of hopTo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Porch Group has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500. Comparatively, hopTo has a beta of 3.2, meaning that its share price is 220% more volatile than the S&P 500.

Summary

Porch Group beats hopTo on 7 of the 12 factors compared between the two stocks.

About Porch Group

Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.

About hopTo

hopTo Inc., together with its subsidiaries, develops and sells application publishing software in the United States, Brazil, Japan, Germany, the Netherlands, and internationally. The company's application publishing software includes application virtualization and cloud computing software for a range of computer operating systems, including Windows, UNIX, and various Linux-based variants. It provides its application publishing software solutions under the GO-Global brand name. The company offers GO-Global, an application access solution that provides cross-platform remote access and Web-enabled access to existing software applications, as well as the deployment of secure and private cloud environments for use and/or resale by independent software vendors, corporate enterprises, governmental and educational institutions, and others. Its GO-Global software products comprise GO-Global for Windows that allows access to Windows-based applications from remote locations and Internet connections; GO-Global for UNIX, which allows access to UNIX and Linux-based applications from remote locations, and Internet and connections; and GO-Global Client that allows remote application access from various local, remote, and mobile platforms, including Windows, Linux, UNIX, Apple OS X and iOS, and Google Android. The company sells its products through resellers, such as original equipment manufacturers, system integrators, value-added resellers, and distributors. It serves small to medium-sized companies, departments within large corporations, governmental and educational institutions, and independent software vendors. The company was formerly known as GraphOn Corporation and changed its name to hopTo Inc. in September 2013. hopTo Inc. was incorporated in 1996 and is headquartered in Concord, New Hampshire.