SmartRent (NYSE:SMRT – Get Rating) and Simulations Plus (NASDAQ:SLP – Get Rating) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
Insider & Institutional Ownership
72.7% of SmartRent shares are owned by institutional investors. Comparatively, 72.5% of Simulations Plus shares are owned by institutional investors. 12.0% of SmartRent shares are owned by insiders. Comparatively, 23.1% of Simulations Plus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Get SmartRent alerts:Profitability
This table compares SmartRent and Simulations Plus' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SmartRent | -62.30% | -23.75% | -17.16% |
| Simulations Plus | 23.24% | 7.36% | 6.92% |
Risk and Volatility
SmartRent has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, Simulations Plus has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.Analyst Recommendations
This is a breakdown of current ratings for SmartRent and Simulations Plus, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SmartRent | 0 | 1 | 8 | 0 | 2.89 |
| Simulations Plus | 0 | 1 | 2 | 0 | 2.67 |
SmartRent currently has a consensus target price of 6.66, indicating a potential upside of 167.29%. Simulations Plus has a consensus target price of $63.67, indicating a potential upside of 54.42%. Given SmartRent's stronger consensus rating and higher possible upside, equities analysts plainly believe SmartRent is more favorable than Simulations Plus.
Earnings & Valuation
This table compares SmartRent and Simulations Plus' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SmartRent | $110.64 million | 4.46 | -$71.96 million | -0.51 | -4.88 |
| Simulations Plus | $53.91 million | 15.52 | $12.48 million | $0.61 | 67.59 |
Simulations Plus has lower revenue, but higher earnings than SmartRent. SmartRent is trading at a lower price-to-earnings ratio than Simulations Plus, indicating that it is currently the more affordable of the two stocks.
Summary
Simulations Plus beats SmartRent on 8 of the 14 factors compared between the two stocks.
About SmartRent
(Get Rating)
SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company's products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.
About Simulations Plus
(Get Rating)
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. It operates through four segments: Simulations Plus, Cognigen, DILIsym, and Lixoft. The company offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. It also provides products based on mechanistic and mathematical models, such as DILIsym, a quantitative systems pharmacology software; NAFLDsym; IPFsym; RENAsym; and MITOsym. In addition, the company provides Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as modeling and simulation products comprising MonolixSuite and PKPlus. Further, it provides population modeling and simulation contract research services; training and consulting services designed to accelerate pharmacometrics studies; and clinical-pharmacology-based consulting services in support of regulatory submissions. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.
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