Critical Survey: SmartRent (NYSE:SMRT) and Symbotic (NASDAQ:SYM)

SmartRent (NYSE:SMRT) and Symbotic (NASDAQ:SYM) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Valuation & Earnings

This table compares SmartRent and Symbotic”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartRent	$152.33 million	1.92	-$60.56 million	($0.32)	-4.77
Symbotic	$2.25 billion	17.47	-$16.94 million	($0.10)	-651.90

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

Risk & Volatility

SmartRent has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Symbotic has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.

Insider & Institutional Ownership

59.4% of SmartRent shares are owned by institutional investors. 2.3% of SmartRent shares are owned by company insiders. Comparatively, 8.2% of Symbotic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares SmartRent and Symbotic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartRent	-39.76%	-12.81%	-8.90%
Symbotic	-0.45%	-1.88%	-0.47%

Analyst Recommendations

This is a summary of recent ratings and price targets for SmartRent and Symbotic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartRent	1	3	0	0	1.75
Symbotic	3	6	7	0	2.25

SmartRent currently has a consensus price target of $1.45, indicating a potential downside of 4.92%. Symbotic has a consensus price target of $65.62, indicating a potential upside of 0.65%. Given Symbotic’s stronger consensus rating and higher possible upside, analysts clearly believe Symbotic is more favorable than SmartRent.

Summary

Symbotic beats SmartRent on 12 of the 14 factors compared between the two stocks.

About SmartRent

SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.

About Symbotic

Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The company automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Its systems enhance operations at the front end of the supply chain. The company was founded in 2006 and is headquartered in Wilmington, Massachusetts.