Reviewing Wetouch Technology (NASDAQ:WETH) & Smith Micro Software (NASDAQ:SMSI)

Wetouch Technology (NASDAQ:WETHGet Free Report) and Smith Micro Software (NASDAQ:SMSIGet Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Wetouch Technology and Smith Micro Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wetouch Technology 0 1 0 0 2.00
Smith Micro Software 1 0 0 0 1.00

Institutional and Insider Ownership

20.8% of Smith Micro Software shares are held by institutional investors. 0.1% of Wetouch Technology shares are held by insiders. Comparatively, 29.8% of Smith Micro Software shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Wetouch Technology has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Wetouch Technology and Smith Micro Software”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wetouch Technology $42.28 million 0.49 $6.03 million $0.62 2.82
Smith Micro Software $20.56 million 0.68 -$48.70 million ($1.56) -0.35

Wetouch Technology has higher revenue and earnings than Smith Micro Software. Smith Micro Software is trading at a lower price-to-earnings ratio than Wetouch Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wetouch Technology and Smith Micro Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wetouch Technology 17.10% 5.73% 5.53%
Smith Micro Software -158.88% -44.44% -35.89%

Summary

Wetouch Technology beats Smith Micro Software on 8 of the 12 factors compared between the two stocks.

About Wetouch Technology

(Get Free Report)

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.

About Smith Micro Software

(Get Free Report)

Smith Micro Software, Inc. engages in the development and sale of software to enhance the mobile experience to wireless and cable service providers in the Americas, Europe, the Middle East, and Africa. The company offers SafePath Family, SafePath IoT, SafePath Home, and SafePath Premium product suite, which provides tools to protect digital lifestyles and manage connected devices inside and outside the home; and CommSuite, a messaging platform that helps mobile service provides deliver a next-generation voicemail experience to mobile subscribers, as well as enables multi-language voice-to-text (VTT) transcription messaging. It also offers ViewSpot, a retail display management platform that provides on-screen and interactive demos to wireless carriers and other smartphone retailers; and technical support and customer services. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Pittsburgh, Pennsylvania.

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