Head to Head Analysis: Smith Micro Software (NASDAQ:SMSI) and ZIM (OTCMKTS:ZIMCF)

Smith Micro Software (NASDAQ:SMSI) and ZIM (OTCMKTS:ZIMCF) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations for Smith Micro Software and ZIM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	1	0	0	0	1.00
ZIM	0	0	0	0	0.00

Risk and Volatility

Smith Micro Software has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, ZIM has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500.

Earnings and Valuation

This table compares Smith Micro Software and ZIM”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Micro Software	$20.56 million	0.54	-$48.70 million	($1.56)	-0.28
ZIM	N/A	N/A	-$60,000.00	N/A	N/A

ZIM has lower revenue, but higher earnings than Smith Micro Software.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Micro Software	-158.88%	-44.44%	-35.89%
ZIM	N/A	N/A	N/A

Insider and Institutional Ownership

20.8% of Smith Micro Software shares are owned by institutional investors. 29.8% of Smith Micro Software shares are owned by company insiders. Comparatively, 70.7% of ZIM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

ZIM beats Smith Micro Software on 5 of the 9 factors compared between the two stocks.

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.

About ZIM

ZIM Corporation provides software products and services for the database and mobile markets in the United States, Brazil, Canada, Singapore, and Austria. The company operates in two segments, Mobile and Enterprise Software. It develops and sells ZIM integrated development environment (IDE) software, an enterprise software for use in the design, development, and management of information databases and mission critical applications. The company’s ZIM IDE software provides an IDE for Microsoft Windows, UNIX, and Linux computer operating systems. Its products are used to develop database applications in various industries, including finance, insurance, marketing, human resource, information, and records management. The company also provides migration services and management products; and short message services. ZIM Corporation was founded in 1997 and is headquartered in Ottawa, Canada.