Head to Head Analysis: Smith Micro Software (NASDAQ:SMSI) and OptimizeRx (NASDAQ:OPRX)

OptimizeRx (NASDAQ:OPRX) and Smith Micro Software (NASDAQ:SMSI) 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 dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	6.37%	10.86%	7.93%
Smith Micro Software	-165.35%	-55.78%	-41.02%

Earnings & Valuation

This table compares OptimizeRx and Smith Micro Software”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$109.43 million	1.06	$5.13 million	$0.35	17.69
Smith Micro Software	$17.36 million	0.76	-$29.33 million	($6.90)	-0.38

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for OptimizeRx and Smith Micro Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	2	6	0	2.56
Smith Micro Software	1	0	1	0	2.00

OptimizeRx currently has a consensus price target of $13.43, indicating a potential upside of 116.94%. Smith Micro Software has a consensus price target of $12.50, indicating a potential upside of 382.63%. Given Smith Micro Software’s higher possible upside, analysts clearly believe Smith Micro Software is more favorable than OptimizeRx.

Insider and Institutional Ownership

76.5% of OptimizeRx shares are held by institutional investors. Comparatively, 20.8% of Smith Micro Software shares are held by institutional investors. 7.5% of OptimizeRx shares are held by company insiders. Comparatively, 34.7% of Smith Micro Software shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

OptimizeRx has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Summary

OptimizeRx beats Smith Micro Software on 12 of the 14 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

About Smith Micro Software

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.