Stratasys (NASDAQ: MITK) and Mitek Systems (NASDAQ:MITK) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Stratasys -5.57% 0.78% 0.64%
Mitek Systems 5.75% 4.74% 3.80%

Institutional and Insider Ownership

76.5% of Stratasys shares are held by institutional investors. Comparatively, 45.9% of Mitek Systems shares are held by institutional investors. 4.3% of Stratasys shares are held by company insiders. Comparatively, 8.5% of Mitek Systems shares are held 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.

Analyst Recommendations

This is a summary of recent ratings for Stratasys and Mitek Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stratasys 1 7 4 0 2.25
Mitek Systems 0 1 1 0 2.50

Stratasys currently has a consensus target price of $22.50, indicating a potential downside of 2.60%. Mitek Systems has a consensus target price of $13.00, indicating a potential upside of 76.87%. Given Mitek Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Mitek Systems is more favorable than Stratasys.

Earnings & Valuation

This table compares Stratasys and Mitek Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stratasys $668.36 million 1.86 -$38.27 million $0.13 177.69
Mitek Systems $45.39 million 6.12 $14.09 million $0.21 35.00

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

Volatility & Risk

Stratasys has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Mitek Systems has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Summary

Mitek Systems beats Stratasys on 9 of the 14 factors compared between the two stocks.

About Stratasys

Stratasys Ltd. provides 3D printing and additive manufacturing solutions for individuals, small and large businesses, and enterprises. Its 3D printing systems utilize its fused deposition modeling (FDM) and inkjet-based PolyJet technologies to enable the production of prototypes, tools used for production and manufactured goods directly from 3D CAD files or other 3D content. The company offers entry-level desktop 3D printers to systems for rapid prototyping, and production systems for direct digital manufacturing. It also provides 3D printing consumable materials, including FDM cartridge-based materials, PolyJet cartridge-based materials, non-color digital materials, and color variations; and downloadable and cloud-based professional 3D printing workflow software, as well as suites of software with various 3D printing systems. In addition, the company offers customer support, basic warranty, and extended support programs; leases or rents 3D printers and 3D production systems; produces prototypes and end-use parts for customers from a customer-provided CAD file; and provides plastic and metal parts for rapid prototyping and production processes, as well as related professional services. Further, it operates Thingiverse, an online community for sharing downloadable, digital 3D designs; and GrabCAD Community, a resource of CAD models for mechanical engineers and designers. The company's products and services are primarily used in automotive, aerospace, medical, dental, jewelry, and education markets. Stratasys Ltd. sells its products through a network of resellers and independent sales agents worldwide. The company was founded in 1989 and is headquartered in Eden Prairie, Minnesota.

About Mitek Systems

Mitek Systems, Inc. develops, markets, and sells mobile image capture and identity verification software solutions for enterprise customers worldwide. The company's solutions are embedded in native mobile apps and mobile optimized Websites to enhance mobile user experiences and transactions. It offers Mobile Deposit that allows individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that can be integrated into mobile apps, mobile Websites, and desktop applications; Mobile Fill to pre-fill forms with personal data by simply snapping a picture of the consumer's driver license, credit card, or other document; Mobile Docs, a mobile document scanning solution; and MiSnap Multi-Check Capture, a software development kit that banks embed in their business banking app that facilitates capture of various checks in one deposit session. The company markets and sells its solutions primarily to banks, credit unions, lenders, payments processers, card issuers, insurers, etc. through direct sales teams and channel partners. Mitek Systems, Inc. was founded in 1983 and is headquartered in San Diego, California.

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