Smith Micro Software (NASDAQ:SMSI – Get Free Report) and Agilysys (NASDAQ:AGYS – Get Free Report) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Profitability
This table compares Smith Micro Software and Agilysys’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smith Micro Software | -92.60% | -44.59% | -31.78% |
| Agilysys | 12.99% | 11.94% | 8.20% |
Volatility & Risk
Smith Micro Software has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Agilysys has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith Micro Software | 1 | 0 | 1 | 0 | 2.00 |
| Agilysys | 0 | 3 | 5 | 0 | 2.62 |
Smith Micro Software presently has a consensus price target of $12.50, indicating a potential upside of 338.60%. Agilysys has a consensus price target of $124.60, indicating a potential upside of 11.89%. Given Smith Micro Software’s higher probable upside, equities analysts plainly believe Smith Micro Software is more favorable than Agilysys.
Earnings and Valuation
This table compares Smith Micro Software and Agilysys”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 | $17.36 million | 0.92 | -$29.33 million | ($3.52) | -0.81 |
| Agilysys | $319.31 million | 9.84 | $38.79 million | $1.51 | 73.75 |
Agilysys has higher revenue and earnings than Smith Micro Software. Smith Micro Software is trading at a lower price-to-earnings ratio than Agilysys, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
20.8% of Smith Micro Software shares are owned by institutional investors. Comparatively, 88.0% of Agilysys shares are owned by institutional investors. 34.7% of Smith Micro Software shares are owned by company insiders. Comparatively, 8.7% of Agilysys shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Agilysys beats Smith Micro Software on 11 of the 14 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 Agilysys
Agilysys, Inc. operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. It offers software solutions fully integrated with third party hardware and operating systems; cloud applications, support, and maintenance; subscription and maintenance; and professional services. The company’s hospitality software solutions include hospitality experience cloud offers solution ecosystems that combine core operational systems for property management, point-of-sale (POS), and inventory and procurement; and Hospitality Solution Studios. Its food and beverage ecosystem solutions comprise InfoGenesis POS; IG Kiosk; IG Flex; IG KDS; IG OnDemand; IG Fly; IG Quick Pay; IG Smart Menu; IG Digital Menu Board; IG PanOptic AI-powered self-checkout kiosk; Pay, a payment processing solution; eCash for cashless tender; gift card solution; and Analyze, a cloud-based data analytic platform. The company’s inventory and procurement ecosystem solutions include Eatec solution and Stratton Warren System; LMS, a on-premise or hosted, web and mobile-enabled PMS solution; Versa, a hospitality solution; and Stay, a cloud-native SaaS property management system. Its hospitality and leisure and experience enhancer solutions comprise Book, Express Kiosk and Express Mobile for check-in and check-out; Spa software; Golf; Sales & Catering; Service; Authorize; DataMagine; Reserve solution; Digital Marketing solution; Retail POS solution; Central Reservations; Loyalty & Promotions; Membership; Residence Management; and Guest App. It serves hotels, resorts and cruise lines, casinos, corporate food service management, restaurants, universities, stadiums, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1932 and is headquartered in Alpharetta, Georgia.
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