Smith Micro Software (NASDAQ:SMSI – Get Free Report) and Leafly (NASDAQ:LFLY – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Risk & Volatility
Smith Micro Software has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Leafly has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Institutional and Insider Ownership
20.8% of Smith Micro Software shares are owned by institutional investors. Comparatively, 15.6% of Leafly shares are owned by institutional investors. 20.5% of Smith Micro Software shares are owned by insiders. Comparatively, 7.6% of Leafly shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smith Micro Software | $24.18 million | 0.62 | -$24.40 million | ($5.20) | -0.24 |
| Leafly | $42.25 million | 0.13 | -$9.50 million | ($2.32) | -0.75 |
Leafly has higher revenue and earnings than Smith Micro Software. Leafly 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.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Smith Micro Software and Leafly, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith Micro Software | 0 | 0 | 1 | 0 | 3.00 |
| Leafly | 0 | 0 | 2 | 0 | 3.00 |
Smith Micro Software presently has a consensus price target of $5.00, indicating a potential upside of 293.70%. Leafly has a consensus price target of $7.59, indicating a potential upside of 333.71%. Given Leafly’s higher possible upside, analysts clearly believe Leafly is more favorable than Smith Micro Software.
Profitability
This table compares Smith Micro Software and Leafly’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smith Micro Software | -210.99% | -36.69% | -30.78% |
| Leafly | -14.65% | N/A | -25.26% |
Summary
Leafly beats Smith Micro Software on 9 of the 13 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 Leafly
Leafly Holdings, Inc. owns and operates a platform to provide consumers with cannabis information and connects consumers to cannabis brands and licensed retailers. The company offers subscription-based marketplace listings, digital advertising solutions, and software as a service-based tools to cannabis retailers; and information, reviews, menus, and ordering and delivery options to its audience through its website and mobile applications. Leafly Holdings, Inc. was founded in 2010 and is headquartered in Seattle, Washington.
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