Leafly (NASDAQ:LFLY – Get Free Report) and Smith Micro Software (NASDAQ:SMSI – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Leafly and Smith Micro Software, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leafly | 0 | 0 | 2 | 0 | 3.00 |
| Smith Micro Software | 0 | 0 | 1 | 0 | 3.00 |
Leafly currently has a consensus target price of $7.59, indicating a potential upside of 383.44%. Smith Micro Software has a consensus target price of $5.00, indicating a potential upside of 244.83%. Given Leafly’s higher probable upside, equities research analysts clearly believe Leafly is more favorable than Smith Micro Software.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leafly | $35.87 million | 0.13 | -$9.50 million | ($2.32) | -0.68 |
| Smith Micro Software | $24.18 million | 0.71 | -$24.40 million | ($5.20) | -0.28 |
Leafly has higher revenue and earnings than Smith Micro Software. Leafly is trading at a lower price-to-earnings ratio than Smith Micro Software, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Leafly has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
Insider and Institutional Ownership
15.6% of Leafly shares are held by institutional investors. Comparatively, 20.8% of Smith Micro Software shares are held by institutional investors. 7.6% of Leafly shares are held by insiders. Comparatively, 20.5% of Smith Micro Software shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Leafly and Smith Micro Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leafly | -14.65% | N/A | -25.26% |
| Smith Micro Software | -210.99% | -36.69% | -30.78% |
Summary
Leafly beats Smith Micro Software on 9 of the 13 factors compared between the two stocks.
About Leafly
Leafly Holdings, Inc. owns and operates a platform to provide consumers with cannabis information and connects consumers to cannabis brands and licensed retailers. The company offers subscription-based marketplace listings, digital advertising solutions, and software as a service-based tools to cannabis retailers; and information, reviews, menus, and ordering and delivery options to its audience through its website and mobile applications. Leafly Holdings, Inc. was founded in 2010 and is headquartered in Seattle, Washington.
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.
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