Smith Micro Software (NASDAQ: SMSI) is one of 125 public companies in the “Software” industry, but how does it contrast to its competitors? We will compare Smith Micro Software to similar companies based on the strength of its profitability, risk, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

14.0% of Smith Micro Software shares are owned by institutional investors. Comparatively, 57.8% of shares of all “Software” companies are owned by institutional investors. 22.0% of Smith Micro Software shares are owned by insiders. Comparatively, 19.3% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Smith Micro Software and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smith Micro Software 0 0 0 0 N/A
Smith Micro Software Competitors 275 2078 4400 86 2.63

As a group, “Software” companies have a potential upside of 2.80%. Given Smith Micro Software’s competitors higher probable upside, analysts clearly believe Smith Micro Software has less favorable growth aspects than its competitors.

Risk and Volatility

Smith Micro Software has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Smith Micro Software’s competitors have a beta of 0.90, indicating that their average stock price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares Smith Micro Software and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Smith Micro Software $28.24 million -$14.51 million -2.24
Smith Micro Software Competitors $2.28 billion $423.93 million 417.61

Smith Micro Software’s competitors have higher revenue and earnings than Smith Micro Software. Smith Micro Software is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Smith Micro Software -39.83% -450.58% -38.59%
Smith Micro Software Competitors -44.10% -25.51% -9.42%

Summary

Smith Micro Software competitors beat Smith Micro Software on 7 of the 9 factors compared.

Smith Micro Software Company Profile

Smith Micro Software, Inc. is a provider of software solutions. The Company operates through two segments: Wireless and Graphics. The Company offers multi-platform, modular solutions organized into three product families, including NetWise, CommSuite and QuickLink. For mobile network operators, NetWise helps reduce cellular congestion and optimize data traffic across third-generation (3G), fourth-generation (4G) and wireless fidelity (Wi-Fi) networks. Graphics segment includes its consumer-based products, such as Poser, Anime Studio, Manga Studio, MotionArtist and StuffIt. The Graphics segment develops a range of software, including graphic design and animation, compression and personal computer (PC)/Mac utilities, for consumers, professional artists and educators. The Company also offers Family Safety platform for family locator and parental controls.

Receive News & Stock Ratings for Smith Micro Software Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Smith Micro Software Inc. and related stocks with our FREE daily email newsletter.