Analyzing SmartRent (NYSE:SMRT) and Symbotic (NASDAQ:SYM)

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

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%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartRent	$152.33 million	1.72	-$60.56 million	($0.32)	-4.27
Symbotic	$2.25 billion	16.75	-$16.94 million	($0.10)	-625.10

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.

Institutional and Insider Ownership

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SmartRent and Symbotic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartRent	1	2	0	0	1.67
Symbotic	3	6	7	0	2.25

SmartRent currently has a consensus price target of $1.45, suggesting a potential upside of 6.23%. Symbotic has a consensus price target of $65.62, suggesting a potential upside of 4.97%. Given SmartRent’s higher probable upside, research analysts plainly believe SmartRent is more favorable than Symbotic.

Risk & Volatility

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

Summary

Symbotic beats SmartRent on 11 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.