Head-To-Head Analysis: Sparta Commercial Services (OTCMKTS:SRCO) and OptimizeRx (NASDAQ:OPRX)

Sparta Commercial Services (OTCMKTS:SRCO) and OptimizeRx (NASDAQ:OPRX) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Sparta Commercial Services and OptimizeRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sparta Commercial Services	-1,938.08%	N/A	-38,027.46%
OptimizeRx	-23.30%	-10.05%	-9.51%

Risk & Volatility

Sparta Commercial Services has a beta of -0.2, meaning that its stock price is 120% less volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sparta Commercial Services and OptimizeRx’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sparta Commercial Services	$260,000.00	10.75	$1.02 million	N/A	N/A
OptimizeRx	$62.45 million	2.61	-$11.44 million	($0.82)	-11.94

Sparta Commercial Services has higher earnings, but lower revenue than OptimizeRx.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sparta Commercial Services and OptimizeRx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sparta Commercial Services	0	0	0	0	N/A
OptimizeRx	0	0	8	0	3.00

OptimizeRx has a consensus price target of $15.60, indicating a potential upside of 59.35%. Given OptimizeRx’s higher probable upside, analysts clearly believe OptimizeRx is more favorable than Sparta Commercial Services.

Institutional & Insider Ownership

77.8% of OptimizeRx shares are held by institutional investors. 0.5% of Sparta Commercial Services shares are held by insiders. Comparatively, 4.4% of OptimizeRx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

OptimizeRx beats Sparta Commercial Services on 8 of the 11 factors compared between the two stocks.

About Sparta Commercial Services

Sparta Commercial Services, Inc. develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for vehicle dealerships, racetracks, private clubs, country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. The company also owns and manages websites, which sell motorcycle, recreational vehicle, and truck title history reports for consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies; and designs, launches, maintains, and hosts websites for businesses, as well as provides text messaging services. In addition, it offers eCommerce, customer relationship management development and integration, search engine optimization, social media marketing, and online reviews website services to its clients. Further, the company provides an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment; and a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is headquartered in New York, New York.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, provides various solutions to life sciences organizations, healthcare providers (HCPs), and patients. Its products and applications include Evidence-Based Physician Engagement solution to assist HCPs in identifying patients who may be qualified for specific therapies, raise awareness of patient access pathways, and identify early indicators of non-adherence among patient populations; and Point of Care Banner messaging solution to deliver a variety of awareness and messaging within the clinical workflow. The company also offers Social Network Banner Messaging solution to deliver banner messaging to HCPs within their social network apps; Institutional Account-based Banner Messaging solution that provides its clients access to delivering banner messaging online and on the intranets of targeted health system accounts; and Financial Messaging solution, which provides prescribers visibility to branded copay offers and other patient support programs directly within their electronic health record and/or e-Prescribe systems. In addition, it provides Patient Engagement, a technology solution that provides digital messaging services through its cloud-based Mobile Health Messenger platform; HIPAA-compliant automated mobile messaging platform, which allows pharmaceutical manufactures and related entities to directly engage with patients to enhance regimen compliance; and Therapy Initiation Workflow, a group of digital solutions that focuses on accelerating patient access to treatments where time-consuming medical documentation is required of HCPs prior to pharmacies dispensing prescribed drugs. The company was founded in 2006 and is headquartered in Rochester, Michigan.