Financial Analysis: Simulations Plus (NASDAQ:SLP) and ImageWare Systems (OTCMKTS:IWSY)

Simulations Plus (NASDAQ:SLP) and ImageWare Systems (OTCMKTS:IWSY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Simulations Plus and ImageWare Systems’ net margins, return on equity and return on assets.

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

Institutional & Insider Ownership

78.1% of Simulations Plus shares are held by institutional investors. Comparatively, 2.2% of ImageWare Systems shares are held by institutional investors. 19.1% of Simulations Plus shares are held by insiders. Comparatively, 37.7% of ImageWare Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Simulations Plus and ImageWare Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simulations Plus	$79.18 million	4.28	-$64.72 million	($3.13)	-5.36
ImageWare Systems	N/A	N/A	N/A	N/A	N/A

ImageWare Systems has lower revenue, but higher earnings than Simulations Plus.

Volatility and Risk

Simulations Plus has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, ImageWare Systems has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Simulations Plus and ImageWare Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simulations Plus	1	6	3	0	2.20
ImageWare Systems	0	0	0	0	0.00

Simulations Plus currently has a consensus price target of $24.40, indicating a potential upside of 45.50%. Given Simulations Plus’ stronger consensus rating and higher possible upside, equities analysts clearly believe Simulations Plus is more favorable than ImageWare Systems.

Summary

Simulations Plus beats ImageWare Systems on 7 of the 10 factors compared between the two stocks.

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.

About ImageWare Systems

ImageWare Systems, Inc. operates as a biometric solution provider in the United States and internationally. It offers Imageware Biometric Engine, a biometric identity and authentication database built for multi-biometric enrollment, management, and authentication. The company also provides Imageware Proof that enables an entity to prove user identity from their biometrics, government issued ID, and credit bureau data; Imageware Capture that enables the capture of biographic and biometric details, such as face, fingerprint, palm print, and iris, as well as scars, marks, and tattoos; Imageware Identify, which enables a user to identify others from their biometrics; and Imageware Investigate that enables an officer to create digital lineups. In addition, it offers Imageware Credential that enables a user to design, build, and print badges for access control systems, which includes tickets, smart badges, wristbands, personal identity verification cards, and others; Imageware Digital ID, a decentralized identity service that enables self-sovereign identity underpinned by blockchain technology tied to biometrics; and Imageware Authenticate, which enables users to leverage multimodal biometrics hosted in a central server or cloud to log in to services and applications from a device. Further, the company provides Law Enforcement 2.0 solution which enables state, local, and federal agencies to capture, archive, search, retrieve, and share digital images, fingerprints, and other biometrics, as well as criminal history records on a stand-alone, networked, wireless or browser-based platform. It serves airports and seaports, education, financial, government, healthcare, and law enforcement industries. The company was incorporated in 1987 and is headquartered in San Diego, California.