Financial Contrast: SMC Entertainment (OTCMKTS:SMCE) and Singing Machine (NASDAQ:MICS)

SMC Entertainment (OTCMKTS:SMCE) and Singing Machine (NASDAQ:MICS) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider and Institutional Ownership

3.6% of Singing Machine shares are owned by institutional investors. 6.3% of Singing Machine shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for SMC Entertainment and Singing Machine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC Entertainment	0	0	0	0	N/A
Singing Machine	0	0	1	0	3.00

Singing Machine has a consensus target price of $4.00, suggesting a potential upside of 277.36%. Given Singing Machine’s higher possible upside, analysts plainly believe Singing Machine is more favorable than SMC Entertainment.

Profitability

This table compares SMC Entertainment and Singing Machine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SMC Entertainment	N/A	N/A	N/A
Singing Machine	-23.42%	-57.88%	-31.16%

Risk & Volatility

SMC Entertainment has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500. Comparatively, Singing Machine has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500.

Earnings & Valuation

This table compares SMC Entertainment and Singing Machine’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC Entertainment	N/A	N/A	N/A	N/A	N/A
Singing Machine	$39.30 million	0.11	-$4.64 million	($2.22)	-0.48

SMC Entertainment has higher earnings, but lower revenue than Singing Machine.

Summary

Singing Machine beats SMC Entertainment on 6 of the 9 factors compared between the two stocks.

About SMC Entertainment

SMC Entertainment, Inc., an early stage developmental company focuses on the development of fintech technology in the United States. It intends to provide fintech-disruption business products and services. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. The company was incorporated in 1998 and is based in Boca Raton, Florida.

About Singing Machine

The Singing Machine Company, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The Singing Machine Company, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.