Smith Micro Software (NASDAQ:SMSI) and MiX Telematics (NYSE:MIXT) Financial Analysis

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

Valuation & Earnings

This table compares MiX Telematics and Smith Micro Software”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MiX Telematics	$150.06 million	2.36	$4.52 million	$0.25	58.20
Smith Micro Software	$24.18 million	0.37	-$24.40 million	($5.20)	-0.15

MiX Telematics has higher revenue and earnings than Smith Micro Software. Smith Micro Software is trading at a lower price-to-earnings ratio than MiX Telematics, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MiX Telematics	3.72%	8.45%	5.11%
Smith Micro Software	-210.99%	-36.69%	-30.78%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for MiX Telematics and Smith Micro Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MiX Telematics	0	0	1	0	3.00
Smith Micro Software	0	0	1	0	3.00

MiX Telematics currently has a consensus price target of $12.00, indicating a potential downside of 17.53%. Smith Micro Software has a consensus price target of $5.00, indicating a potential upside of 554.02%. Given Smith Micro Software’s higher possible upside, analysts clearly believe Smith Micro Software is more favorable than MiX Telematics.

Risk and Volatility

MiX Telematics has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

45.7% of MiX Telematics shares are owned by institutional investors. Comparatively, 20.8% of Smith Micro Software shares are owned by institutional investors. 12.4% of MiX Telematics shares are owned by insiders. Comparatively, 20.5% of Smith Micro Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

MiX Telematics beats Smith Micro Software on 10 of the 12 factors compared between the two stocks.

About MiX Telematics

MiX Telematics Limited, together with its subsidiaries, provides fleet and mobile asset management solutions through software-as-a-service (SaaS) delivery model. It offers MiX Fleet Manager, a commercial fleet management solution comprising MyMiX, an innovative driver engagement platform; MiX Vision, an on-road and in-vehicle video recording solution; MiX Rovi, an in-vehicle display and communications system; MiX RIBAS and DriveMate, an in-cab driving aid solution; MiX Hours of Service, which allows real-time monitoring and compliance; MiX Journey Management, an easy-to-use electronic alternative to paper-based systems; and MiX OEM Connect allows customer instant, direct integration to relevant, and powerful telematics data. The company provides MiX Asset Manager, asset tracking products including generators, light towers, storage tanks and pumps, and asset management solution for visibility of corporate assets; and Matrix, a suite of mobile asset management solutions for entry-level fleets and consumers, which offers real-time and historical vehicle tracking, and positioning, unauthorized vehicle use alerts, panic emergency response, crash alerts, driver behavior alerts, fuel tax logbooks, and vehicle maintenance notifications. In addition, it offers Beam-e, a crowdsourcing platform to locate vehicles without the expense of utilizing a traditional cellular network connection. The company delivers fleet and mobile asset management solutions as SaaS to 1,001,800 subscribers in South Africa, the Americas, the Middle East, Australia, Europe, and Brazil. MiX Telematics Limited was founded in 1996 and is headquartered in Boca Raton, Florida.

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.