Financial Comparison: Porch Group (NASDAQ:PRCH) vs. MMTec (NASDAQ:MTC)

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

Insider & Institutional Ownership

48.5% of Porch Group shares are held by institutional investors. Comparatively, 0.3% of MMTec shares are held by institutional investors. 23.5% of Porch Group shares are held by insiders. Comparatively, 12.8% of MMTec shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Porch Group	-18.26%	N/A	-11.22%
MMTec	N/A	N/A	N/A

Earnings & Valuation

This table compares Porch Group and MMTec”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Porch Group	$430.30 million	0.44	-$133.93 million	($1.14)	-1.39
MMTec	$869,935.00	26.44	$48.96 million	N/A	N/A

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

Risk and Volatility

Porch Group has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, MMTec has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Porch Group and MMTec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Porch Group	0	1	5	1	3.00
MMTec	0	0	0	0	N/A

Porch Group currently has a consensus price target of $4.18, indicating a potential upside of 164.47%. Given Porch Group’s higher possible upside, analysts clearly believe Porch Group is more favorable than MMTec.

Summary

Porch Group beats MMTec on 7 of the 11 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 MMTec

MMTec, Inc., together with its subsidiaries, develops and deploys platforms that enable financial institutions to engage in securities market transactions and settlements worldwide. The company operates in two segments, Gujia and MM Global. It offers Internet-based securities solutions comprising Securities Dealers Trading System, which supports securities registration and clearing, account management, risk management, trading and execution, and third party access middleware; Private Fund Investment Management System that supports multi-account management, fund valuation, risk management, quantitative trading access, liquidation, and requisition management; and Mobile Transaction Individual Client System and PC Client System for Apple IOS, Android, PC, and Web applications. The company enables its customers to white label its trading interface, as well as select modular functionalities. It serves hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms. MMTec, Inc. was incorporated in 2018 and is headquartered in Sheung Wan, Hong Kong.