Contrasting Smith Micro Software (NASDAQ:SMSI) & Scientific Learning (OTCMKTS:SCIL)

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

Insider & Institutional Ownership

20.8% of Smith Micro Software shares are held by institutional investors. 31.4% of Smith Micro Software shares are held by company insiders. Comparatively, 16.1% of Scientific Learning shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Micro Software	-118.00%	-42.50%	-35.23%
Scientific Learning	N/A	N/A	N/A

Earnings and Valuation

This table compares Smith Micro Software and Scientific Learning”s top-line 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	0.85	-$48.70 million	($1.73)	-0.52
Scientific Learning	N/A	N/A	N/A	N/A	N/A

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Smith Micro Software and Scientific Learning, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	0	0	1	0	3.00
Scientific Learning	0	0	0	0	0.00

Smith Micro Software presently has a consensus price target of $5.00, indicating a potential upside of 453.71%. Given Smith Micro Software’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Smith Micro Software is more favorable than Scientific Learning.

Summary

Smith Micro Software beats Scientific Learning on 6 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 Scientific Learning

Scientific Learning Corporation, an education company, develops, distributes, and licenses technology that accelerates learning by enhancing the processing efficiency of the brain. Its flagship Fast ForWord, a Web-based product, comprises Fast ForWord Language for elementary learners and Fast ForWord Literacy for adolescent learners that build foundational reading and language skills to help districts move below grade level learners to learn in the general classroom, and Fast ForWord Reading, which builds learning capacity through developing cognitive skills using exercises focusing on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and comprehension. The company also provides Reading Assistant that offers a one-on-one reading tutor for learners; ResultsNow!, an online hosting and support solution for its Fast ForWord and Reading Assistant products; and BrainPro services targeted at learners who are below grade level. In addition, it offers on-site product training, technical installation, implementation management, consulting, and Web-based synchronous and asynchronous professional development services; and software technical update releases, as well as extensive telephone, email, and chat support services. The company offers learning solutions primarily to educational institutions, speech and language clinics, learning centers, and parents. Scientific Learning Corporation was founded in 1995 and is headquartered in Oakland, California.