Red Violet (NASDAQ:RDVT) and Smith Micro Software (NASDAQ:SMSI) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Red Violet and Smith Micro Software, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red Violet 0 0 0 0 N/A
Smith Micro Software 0 0 1 0 3.00

Smith Micro Software has a consensus target price of $4.00, indicating a potential upside of 96.08%. Given Smith Micro Software’s higher probable upside, analysts clearly believe Smith Micro Software is more favorable than Red Violet.

Earnings & Valuation

This table compares Red Violet and Smith Micro Software’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Red Violet N/A N/A N/A N/A N/A
Smith Micro Software $22.97 million 2.51 -$6.66 million ($0.26) -7.85

Red Violet has higher earnings, but lower revenue than Smith Micro Software.

Institutional & Insider Ownership

6.2% of Red Violet shares are owned by institutional investors. Comparatively, 6.9% of Smith Micro Software shares are owned by institutional investors. 17.1% of Smith Micro Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Red Violet N/A N/A N/A
Smith Micro Software -23.11% -71.14% -15.35%

Summary

Smith Micro Software beats Red Violet on 5 of the 8 factors compared between the two stocks.

About Red Violet

Red Violet, Inc., a software and services company, specializes in big data analysis providing cloud-based mission-critical information solutions to enterprises in various industries in the United States. Its proprietary platform includes CORE, a cloud-based technology platform, which serves various industries within risk management. The company serves various industries, including law enforcement, government, financial services, insurance, and corporate risk for identity verification, risk assessment, fraud detection, and compliance. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective clients, distributors, resellers, strategic partners, and installed base of current clients, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida. Red Violet, Inc. (NasdaqCM:RDVT) operates independently of Cogint, Inc. as of March 26, 2018.

About Smith Micro Software

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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