Data sourced from mayfieldrecorder.com and MarketBeat.com, originally published August 2019. All figures reflect conditions at that time and should not be used for current investment decisions.
Overview
New Relic, Inc. (NYSE: NEWR) and UMeWorld Ltd. (OTCMKTS: UMEWF) are both classified as computer and technology companies, but they operate in very different market segments and at vastly different scales. New Relic is an established, publicly traded SaaS observability platform, while UMeWorld is a small-cap educational technology holding company. This comparison examines the two businesses across seven dimensions: institutional ownership, insider ownership, risk and volatility, analyst recommendations, profitability, valuation, and earnings.
Insider and Institutional Ownership
Institutional ownership is a widely watched signal of long-term confidence from large money managers, hedge funds, and endowments. At the time of this comparison:
- New Relic: 79.3% of shares held by institutional investors; 17.4% held by insiders.
- UMeWorld: Institutional ownership data was not reported; 6.0% of shares held by insiders.
New Relic’s high institutional ownership suggests broad confidence from professional investors. UMeWorld’s comparatively low insider ownership and lack of reported institutional interest reflect its status as a micro-cap OTC-traded company.
Risk and Volatility
Beta measures a stock’s price sensitivity relative to the broader market (S&P 500). A beta of 1.0 means the stock moves in line with the index; values below 1.0 indicate lower volatility, while negative values suggest inverse correlation.
- New Relic: Beta of 0.83 — approximately 17% less volatile than the S&P 500.
- UMeWorld: Beta of -1.21 — indicating an inverse and amplified relationship with the broader market, which is common in very thinly traded OTC stocks.
A negative beta for UMeWorld should be interpreted with caution. For micro-cap OTC stocks with low trading volume, beta calculations can be statistically unreliable due to sparse price data.
Analyst Recommendations
The following ratings summary was reported by MarketBeat.com at the time of the original article’s publication:
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
|---|---|---|---|---|---|
| New Relic | 1 | 5 | 10 | 0 | 2.56 |
| UMeWorld | 0 | 0 | 0 | 0 | N/A |
New Relic carried a consensus analyst price target of $99.08 at the time, representing a potential upside of approximately 72.3% from its then-current trading price. UMeWorld had no analyst coverage, which is typical for OTC micro-cap stocks and limits the available information for retail investors.
Profitability
Key profitability metrics for both companies at the time of comparison:
| Net Margins | Return on Equity | Return on Assets | |
|---|---|---|---|
| New Relic | -9.93% | -8.55% | -2.76% |
| UMeWorld | N/A | N/A | N/A |
New Relic was operating at a net loss at the time, a common characteristic for high-growth SaaS companies that prioritize revenue expansion and customer acquisition over near-term profitability. UMeWorld’s profitability metrics were unavailable, likely due to the company’s minimal reported revenue.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
|---|---|---|---|---|---|
| New Relic | $479.23 million | 7.01 | -$40.89 million | -$0.31 | -185.48 |
| UMeWorld | $10,000 | 731.64 | -$1.32 million | N/A | N/A |
The revenue gap between these two companies is stark. New Relic reported over $479 million in gross revenue, while UMeWorld reported just $10,000 — a difference of more than 47,000x. Both companies reported net losses. UMeWorld’s extremely high Price/Sales ratio of 731.64 reflects its near-zero revenue base rather than any meaningful market premium.
Summary Scorecard
Across the 11 financial and qualitative factors examined in this comparison, New Relic scored more favorably than UMeWorld on 6 of those factors, primarily driven by its scale, institutional coverage, analyst following, and revenue base.
Company Profiles
New Relic, Inc.
New Relic, Inc. is a software-as-a-service (SaaS) observability company headquartered in San Francisco, California, and founded in 2007. Its cloud-based platform enables organizations to collect, store, and analyze telemetry data across their entire software stack. Key product areas at the time of this article included:
- Application Performance Management (APM): Visibility into server-side application performance, including response times, error rates, and transaction throughput.
- New Relic Mobile: Code-level performance monitoring for iOS and Android applications.
- New Relic Browser: Real-user monitoring for desktop and mobile browser-based applications.
- New Relic Synthetics: Simulated usage testing across the software development lifecycle.
- New Relic Infrastructure: Host-level health and configuration monitoring across cloud, on-premises, and hybrid environments.
- New Relic Insights: Real-time analytics for both technical and business users.
- New Relic Applied Intelligence: AIOps capabilities for alert correlation and incident detection.
New Relic distributes its products through direct sales, online channels, and partner integrations.
UMeWorld Ltd.
UMeWorld Ltd. is a holding company incorporated in Hong Kong, operating as an educational technology business in the digital media and digital education segments. Its product portfolio at the time included UMFun, UMTang, UEXiao, and 17Speech. The company was founded by Michael M. Lee on August 8, 1997.
Editorial Note
This article reflects publicly available financial data from August 2019 and is preserved here for historical reference. Both companies’ financial positions, analyst ratings, and market conditions have changed significantly since this comparison was written. This article does not constitute investment advice.