Analyzing AppLovin (NASDAQ:APP) and MassRoots (OTCMKTS:MSRT)

MassRoots (OTCMKTS:MSRT) and AppLovin (NASDAQ:APP) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Valuation & Earnings

This table compares MassRoots and AppLovin’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MassRoots	$10,000.00	32,961.49	-$14.71 million	N/A	N/A
AppLovin	$2.63 billion	8.58	$356.71 million	$1.68	40.90

AppLovin has higher revenue and earnings than MassRoots.

Analyst Ratings

This is a breakdown of current recommendations for MassRoots and AppLovin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MassRoots	0	0	0	0	N/A
AppLovin	1	5	12	0	2.61

AppLovin has a consensus target price of $71.72, indicating a potential upside of 4.36%. Given AppLovin’s higher probable upside, analysts plainly believe AppLovin is more favorable than MassRoots.

Volatility and Risk

MassRoots has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500. Comparatively, AppLovin has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Profitability

This table compares MassRoots and AppLovin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MassRoots	N/A	-139.45%	N/A
AppLovin	16.46%	51.55%	11.31%

Insider & Institutional Ownership

22.1% of MassRoots shares are owned by institutional investors. Comparatively, 41.9% of AppLovin shares are owned by institutional investors. 6.1% of MassRoots shares are owned by insiders. Comparatively, 14.7% of AppLovin shares are owned 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

AppLovin beats MassRoots on 9 of the 11 factors compared between the two stocks.

About MassRoots

MassRoots, Inc. engages in the development and provision of social media network for the cannabis community. It offers WeedPass, a rewards program which enables consumers to earn tickets to movies, sporting events, and festivals by shopping at participating dispensaries. The company was founded by Isaac Dietrich, Stewart Fortier, Tyler Knight, and Hyler Fortier in April 2013 and is headquartered in Denver, CO.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.