MobileSmith (OTCMKTS: MOST) and Tangoe (OTCMKTS:TNGO) are both small-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MobileSmith N/A N/A N/A ($0.30) -6.60
Tangoe N/A N/A N/A ($0.11) -57.73

Tangoe is trading at a lower price-to-earnings ratio than MobileSmith, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MobileSmith and Tangoe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MobileSmith -258.20% N/A -417.96%
Tangoe -7.96% -9.86% -7.97%

Volatility & Risk

MobileSmith has a beta of -44.5, indicating that its share price is 4,550% less volatile than the S&P 500. Comparatively, Tangoe has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

59.2% of Tangoe shares are owned by institutional investors. 12.0% of Tangoe shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for MobileSmith and Tangoe, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MobileSmith 0 0 0 0 N/A
Tangoe 0 1 0 0 2.00

Tangoe has a consensus price target of $6.50, suggesting a potential upside of 2.36%. Given Tangoe’s higher possible upside, analysts plainly believe Tangoe is more favorable than MobileSmith.

Summary

Tangoe beats MobileSmith on 7 of the 8 factors compared between the two stocks.

MobileSmith Company Profile

MobileSmith, Inc. develops and markets a software-as-a-service (SaaS) platform that allows non-programmers to design and build native mobile applications for smartphones and tablets. The Company’s product is the MobileSmith Platform (the Platform). The Company’s Platform is an application development platform that enables organizations to create, deploy and manage custom, native smartphone and tablet applications deliverable across iPhone operating system (iOS) and Android mobile platforms. The Company’s principal products and services include subscription to its SaaS cloud-based mobile application development platform to customers who design and build their own applications; internal and secure mobile development platform for the United States Department of Defense and related contractors; custom mobile application design and development services; mobile application marketing services, and mobile strategy implementation consulting.

Tangoe Company Profile

Tangoe, Inc. is a provider of information technology (IT) and Telecom Expense Management (TEM) software and related services. The Company offers its services to a range of global enterprises and service providers. Its products and solutions include mobility, telecom, cloud, IT expense, strategic consulting and mobility as a service (MaaS). Its mobility solution includes expense management; procurement, logistics and activation; usage management; enterprise mobility; mobile support, and financial management. Its IT expense solution includes expense management, inventory and asset management, usage management and financial management. Its enterprise mobility and IT consulting services include strategic sourcing; strategy assessment, planning, and policy development, and implementation and transition support. The Company offers contract sourcing, strategy and policy consulting, service maturity assessment, global services benchmarking and lifecycle advisory, among others.

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