Smith Micro Software (NASDAQ:SMSI) vs. Elcom International (OTCMKTS:ELCO) Critical Contrast

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Micro Software	$20.56 million	0.90	-$48.70 million	($1.73)	-0.55
Elcom International	N/A	N/A	N/A	N/A	N/A

Elcom International has lower revenue, but higher earnings than Smith Micro Software.

Risk and Volatility

Smith Micro Software has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Elcom International has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Smith Micro Software and Elcom International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	0	0	1	0	3.00
Elcom International	0	0	0	0	0.00

Smith Micro Software presently has a consensus price target of $5.00, indicating a potential upside of 426.87%. Given Smith Micro Software’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Smith Micro Software is more favorable than Elcom International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Micro Software	-118.00%	-42.50%	-35.23%
Elcom International	N/A	N/A	N/A

Insider and Institutional Ownership

20.8% of Smith Micro Software shares are owned by institutional investors. 31.4% of Smith Micro Software shares are owned by company insiders. Comparatively, 13.6% of Elcom International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Smith Micro Software beats Elcom International on 7 of the 10 factors compared between the two stocks.

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.

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.