Elcom International (OTCMKTS:ELCO) versus Simulations Plus (NASDAQ:SLP) Head to Head Comparison

Elcom International (OTCMKTS:ELCO) and Simulations Plus (NASDAQ:SLP) 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 risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Elcom International and Simulations Plus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elcom International	N/A	N/A	N/A
Simulations Plus	-77.96%	16.21%	15.00%

Institutional and Insider Ownership

78.1% of Simulations Plus shares are held by institutional investors. 13.6% of Elcom International shares are held by insiders. Comparatively, 19.1% of Simulations Plus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Elcom International has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500. Comparatively, Simulations Plus has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares Elcom International and Simulations Plus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elcom International	N/A	N/A	N/A	N/A	N/A
Simulations Plus	$79.18 million	4.06	-$64.72 million	($3.13)	-5.08

Elcom International has higher earnings, but lower revenue than Simulations Plus.

Analyst Ratings

This is a summary of recent recommendations for Elcom International and Simulations Plus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elcom International	0	0	0	0	0.00
Simulations Plus	1	6	3	0	2.20

Simulations Plus has a consensus target price of $24.40, suggesting a potential upside of 53.36%. Given Simulations Plus’ stronger consensus rating and higher probable upside, analysts clearly believe Simulations Plus is more favorable than Elcom International.

Summary

Simulations Plus beats Elcom International on 9 of the 10 factors compared between the two stocks.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.

About Simulations Plus

Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym products. In addition, it offers Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as MonolixSuite products for modeling and simulation that allows for population analyses, rapid clinical trial data analyses, and regulatory submissions. Further, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions; and early drug discovery services. Additionally, it offers creative and insightful consulting services to support its quantitative systems pharmacology/quantitative systems toxicology modelling. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.