AppFolio (NASDAQ:APPF) versus iEntertainment Network (OTCMKTS:IENT) Critical Analysis

iEntertainment Network (OTCMKTS:IENT) and AppFolio (NASDAQ:APPF) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for iEntertainment Network and AppFolio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iEntertainment Network	0	0	0	0	0.00
AppFolio	1	0	7	0	2.75

AppFolio has a consensus price target of $261.75, suggesting a potential upside of 4.75%. Given AppFolio’s stronger consensus rating and higher possible upside, analysts clearly believe AppFolio is more favorable than iEntertainment Network.

Earnings & Valuation

This table compares iEntertainment Network and AppFolio”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iEntertainment Network	N/A	N/A	N/A	N/A	N/A
AppFolio	$762.37 million	11.91	$2.70 million	$3.59	69.61

AppFolio has higher revenue and earnings than iEntertainment Network.

Profitability

This table compares iEntertainment Network and AppFolio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iEntertainment Network	N/A	N/A	N/A
AppFolio	17.26%	30.64%	23.53%

Volatility and Risk

iEntertainment Network has a beta of -2.18, meaning that its share price is 318% less volatile than the S&P 500. Comparatively, AppFolio has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

85.2% of AppFolio shares are held by institutional investors. 32.0% of iEntertainment Network shares are held by insiders. Comparatively, 5.2% of AppFolio shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

AppFolio beats iEntertainment Network on 9 of the 10 factors compared between the two stocks.

About iEntertainment Network

iEntertainment Network, Inc. develops and operates retail and online military simulation games. The company offers multiplayer and single-player games. The company was formerly known as Interactive Magic, Inc. and changed its name to iEntertainment Network, Inc. in 1998. The company was founded in 1994 and is based in Cary, North Carolina.

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.