Smartsheet (NYSE:SMAR) and Smith Micro Software (NASDAQ:SMSI) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Smartsheet and Smith Micro Software, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smartsheet 0 5 9 0 2.64
Smith Micro Software 0 0 2 0 3.00

Smartsheet currently has a consensus price target of $50.07, indicating a potential downside of 5.29%. Smith Micro Software has a consensus price target of $6.25, indicating a potential upside of 50.60%. Given Smith Micro Software’s stronger consensus rating and higher possible upside, analysts clearly believe Smith Micro Software is more favorable than Smartsheet.

Risk & Volatility

Smartsheet has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Smartsheet and Smith Micro Software’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Smartsheet $270.88 million 22.93 -$95.94 million ($0.82) -64.48
Smith Micro Software $43.35 million 3.97 $10.72 million $0.23 18.04

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

Profitability

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

Net Margins Return on Equity Return on Assets
Smartsheet -35.42% -21.26% -13.74%
Smith Micro Software 26.37% 33.02% 25.54%

Insider & Institutional Ownership

83.7% of Smartsheet shares are owned by institutional investors. Comparatively, 17.9% of Smith Micro Software shares are owned by institutional investors. 24.7% of Smartsheet shares are owned by company insiders. Comparatively, 24.8% of Smith Micro Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Smith Micro Software beats Smartsheet on 9 of the 14 factors compared between the two stocks.

Smartsheet Company Profile

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.

Smith Micro Software Company Profile

Smith Micro Software, Inc. develops and sells software to simplify and enhance the mobile experience to wireless service providers, device manufacturers, and enterprise businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Wireless and Graphics. The Wireless segment offers SafePath Family, real-time family location tracking app; CommSuite VVM, a Visual Voicemail directly to a mobile phone app and email; CommSuite VTT, Voice-to-Text transcription system; NetWise Optics, a mobile analytics solution; NetWise Passport, an automated user onboarding and Wi-Fi service provisioning solution; QuickLink IoT Services Platform, an end-to-end device management platform; and Captivate, a mobile marketing and Big Data platform. The Graphics segment develops various software products, including graphic design and animation, compression, and PC/Mac utilities for consumers, professional artists, and educators. This segment offers Poser, 3D rendering and animation software for photorealistic characters, art, illustration, and digital design; Moho, 2D animation program for creating movies, cartoons, anime, and cut out animations; MotionArtist, a solution for creating animatics and interactive presentations; and StuffIt Deluxe, a solution for documents and media. The company provides its products through direct sales on its Websites, as well as through affiliate Websites, resellers, and retail outlets. It also offers technical support and customer services. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Aliso Viejo, California.

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