Analyzing Docebo (NASDAQ:DCBO) and Smith Micro Software (NASDAQ:SMSI)

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

Volatility & Risk

Smith Micro Software has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Docebo has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Institutional and Insider Ownership

20.8% of Smith Micro Software shares are held by institutional investors. Comparatively, 53.2% of Docebo shares are held by institutional investors. 34.7% of Smith Micro Software shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Micro Software	-92.60%	-44.59%	-31.78%
Docebo	12.98%	120.29%	16.26%

Analyst Ratings

This is a summary of current ratings and recommmendations for Smith Micro Software and Docebo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	1	0	2	0	2.33
Docebo	0	4	11	1	2.81

Smith Micro Software presently has a consensus target price of $12.50, suggesting a potential upside of 331.03%. Docebo has a consensus target price of $31.23, suggesting a potential upside of 28.79%. Given Smith Micro Software’s higher possible upside, equities research analysts clearly believe Smith Micro Software is more favorable than Docebo.

Earnings & Valuation

This table compares Smith Micro Software and Docebo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Micro Software	$16.88 million	0.96	-$29.33 million	($3.52)	-0.82
Docebo	$258.93 million	2.33	$37.51 million	$1.14	21.27

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

Summary

Docebo beats Smith Micro Software on 13 of the 15 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 Docebo

Docebo Inc. operates as a learning management software company that provides artificial intelligence (AI)-powered learning platform in North America and internationally. It offers Learning Management System (LMS) to train internal and external workforces, partners, and customers. The company's cloud platform consists of a learning suite, which includes Docebo Learn LMS, a cloud-based learning platform that allows learning administrators to deliver personalized learning; Docebo Shape, an AI-based learning content creation tool, which enables learning administrators to turn internal and external resources into engaging, multilingual, and microlearning content to share across the business; Docebo Content that allows off-the-shelf learning content by partnering content specialist; Docebo Learning Impact, a learning measurement tool that enables administrators to prove and improve training programs; Docebo Learn Data, which gives a comprehensive view on learning data to business results; Docebo Connect that connects Docebo to custom tech stack and making integrations; and Docebo Flow that allows businesses to directly inject learning into the flow of work. It also offers Docebo for Salesforce, a native integration that leverages Salesforce's application programming interface and technology architecture to produce a learning experience; Docebo Embed that allows original equipment manufacturers to embed and re-sell Docebo as a part of their software; Docebo Mobile App Publisher product that allows companies to create and publish own branded version of Docebo Go.Learn mobile learning applications; Docebo Extended Enterprise which breeds customer education, partner enablement, and retention; Docebo Discover, Coach & Share that enhances the learning experience to create a culture of social learning; and Docebo for Microsoft Teams, that brings learning directly into Microsoft Teams. The company was founded in 2005 and is headquartered in Toronto, Canada.