Simulations Plus (NASDAQ:SLP – Get Rating) and Arbe Robotics (NASDAQ:ARBE – Get Rating) 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 valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.
Insider & Institutional Ownership
74.3% of Simulations Plus shares are held by institutional investors. Comparatively, 7.5% of Arbe Robotics shares are held by institutional investors. 23.1% of Simulations Plus shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Get Simulations Plus alerts:Volatility & Risk
Simulations Plus has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500.
Earnings and Valuation
This table compares Simulations Plus and Arbe Robotics' gross revenue, earnings per share and valuation.| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Simulations Plus | $53.91 million | 14.35 | $12.48 million | $0.61 | 62.48 |
| Arbe Robotics | $2.25 million | 88.58 | -$58.09 million | ($0.73) | -4.33 |
Simulations Plus has higher revenue and earnings than Arbe Robotics. Arbe Robotics is trading at a lower price-to-earnings ratio than Simulations Plus, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Simulations Plus and Arbe Robotics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Simulations Plus | 23.24% | 7.36% | 6.92% |
| Arbe Robotics | -1,163.30% | -65.35% | -52.06% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Simulations Plus and Arbe Robotics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Simulations Plus | 0 | 1 | 2 | 0 | 2.67 |
| Arbe Robotics | 0 | 0 | 1 | 0 | 3.00 |
Simulations Plus presently has a consensus price target of $63.67, indicating a potential upside of 67.06%. Arbe Robotics has a consensus price target of $11.50, indicating a potential upside of 263.92%. Given Arbe Robotics' stronger consensus rating and higher probable upside, analysts plainly believe Arbe Robotics is more favorable than Simulations Plus.
Summary
Simulations Plus beats Arbe Robotics on 11 of the 14 factors compared between the two stocks.
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. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, a quantitative systems toxicology software; NAFLDsym; IPFsym; RENAsym; IPFsym; and MITOsym. In addition, it offers 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, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions. It serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food companies, as well as academic and regulatory agencies. The company was incorporated in 1996 and is headquartered in Lancaster, California.
About Arbe Robotics
(Get Rating)
Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in Israel and the United States. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.
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