Comparing Perfect (NYSE:PERF) & Mitek Systems (NASDAQ:MITK)

Mitek Systems (NASDAQ:MITK) and Perfect (NYSE:PERF) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Mitek Systems and Perfect, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitek Systems	0	1	1	1	3.00
Perfect	1	2	0	0	1.67

Mitek Systems presently has a consensus price target of $19.33, suggesting a potential upside of 8.92%. Given Mitek Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Mitek Systems is more favorable than Perfect.

Valuation & Earnings

This table compares Mitek Systems and Perfect”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitek Systems	$179.69 million	4.46	$8.80 million	$0.47	37.77
Perfect	$69.15 million	2.82	$4.64 million	$0.06	31.92

Mitek Systems has higher revenue and earnings than Perfect. Perfect is trading at a lower price-to-earnings ratio than Mitek Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mitek Systems and Perfect’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitek Systems	11.39%	19.16%	11.32%
Perfect	8.13%	3.73%	2.98%

Volatility and Risk

Mitek Systems has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Perfect has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Institutional and Insider Ownership

83.6% of Mitek Systems shares are owned by institutional investors. 2.2% of Mitek Systems shares are owned by company insiders. Comparatively, 44.7% of Perfect shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Mitek Systems beats Perfect on 14 of the 15 factors compared between the two stocks.

About Mitek Systems

Mitek Systems, Inc. provides mobile image capture and digital identity verification solutions worldwide. Its product portfolio includes Mobile Deposit that enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile websites, and desktop applications; and Mobile Fill, which includes automatic image capture, minimizes the numbers of clicks, and expedites form fill completion. The company also offers MiSnap, a mobile-capture software development kit that enables an intuitive user experience and instant capture of quality images of identity documents and checks. CheckReader enables financial institutions to automatically extract data from checks once they have been scanned or photographed by the application; Check Fraud Defender, an AI-powered and cloud-hosted model for fighting check fraud; and Check Intelligence that enables financial institutions to automatically extract data from a check image received across any deposit channel, including branch, ATM, remote deposit capture, and mobile. In addition, it provides MiVIP, an end-to-end KYC platform that allows companies to design, build, and deploy robust KYC journeys with little or no development resources; and MiPass provides protection against most sophisticated forms of identity theft and dangerous fraud techniques, such as deepfakes and synthetic identities. Further, the company provides ID_CLOUD, an automated identity verification solution that is integrated into a customers’ application to read and validate identity documents; IDLive Face, a passive facial liveness detection product; IDVoice, a robust AI-driven voice biometric engine; IDLive Voice to stop spoofing attacks on voice biometric systems; and IDLive Doc that works to fight fraud related to digitally displayed document images. The company was incorporated in 1986 and is based in San Diego, California.

About Perfect

Perfect Corp. is a software as a service technology company, which engages in the business of developing makeup virtual try-on solutions. Its solutions include virtual try-ons for makeup, nail art, hairstyles, beard dye and styling, eyewear, jewelry, advanced skin diagnostic technology, foundation shade finder, and interactive artificial reality makeup application tutorial platform. Its brands include Estée Lauder, Clinique, MAC, e.l.e., benefit, Sally Hansen, Belcorp, Decorté, NARS, Aveda, Madisonreed, kate, Sofina iP, Jillstuart, Cosnova, Beekman, Marianna, Ardell, tarte, and Coffret D’or. It operates through the following geographical segments: United States, Japan, France, and Others. The company was founded by Alice H. Chang on February 13, 2015 and is headquartered in New Taipei, Taiwan.