Financial Analysis: Spok (NASDAQ:SPOK) and Mobivity (OTCMKTS:MFON)

Mobivity (OTCMKTS:MFON) and Spok (NASDAQ:SPOK) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Profitability

This table compares Mobivity and Spok’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobivity	-454.90%	N/A	-577.15%
Spok	11.37%	10.63%	7.66%

Risk and Volatility

Mobivity has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, Spok has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Mobivity and Spok, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobivity	0	0	0	0	0.00
Spok	0	2	0	0	2.00

Spok has a consensus target price of $14.00, indicating a potential upside of 26.24%. Given Spok’s stronger consensus rating and higher probable upside, analysts clearly believe Spok is more favorable than Mobivity.

Insider and Institutional Ownership

12.9% of Mobivity shares are owned by institutional investors. Comparatively, 50.8% of Spok shares are owned by institutional investors. 50.6% of Mobivity shares are owned by insiders. Comparatively, 7.4% of Spok shares are owned by 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobivity	$1.14 million	2.87	-$10.23 million	($0.12)	-0.37
Spok	$139.71 million	1.65	$15.88 million	$0.76	14.59

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

Summary

Spok beats Mobivity on 11 of the 13 factors compared between the two stocks.

About Mobivity

Mobivity Holdings Corp. engages in developing and operating proprietary platforms to conduct national and localized, and data-driven marketing campaigns in the United States. The company's Recurrency platform unlocks valuable point of sale systems (POS) and mobile data to help transform customer transactions into actionable and attributable marketing insights and power Connected Rewards interactions. It also operates as a Software-as-a-Service platform used by convenience and quick service restaurant brands to build and engage with their customers; and enables and powers incentivized programs in digital environments. In addition, its platform offers POS data capture, analytics, offers and promotions, predictive offers, personalized receipt promotions, customized mobile messaging, belly loyalty, and other services. It markets and sells its services through direct sales, resellers, and agents, as well as online through its website. The company is based in Chandler, Arizona.

About Spok

Spok Holdings, Inc., through its subsidiary, Spok, Inc., provides healthcare communication solutions in the United States, Europe, Canada, Australia, Asia, and the Middle East. The company's products and services enhance workflows for clinicians and support administrative compliance. It delivers clinical information to care teams when and where it matters to enhance patient outcomes; and provides GenA Pager, a one-way alphanumeric pager. The company offers subscriptions to one-way or two-way messaging services, as well as alphanumeric pagers that are configurable to support unencrypted or encrypted operation; and ancillary services, such as voicemail, and equipment loss or maintenance protection services, as well as sells devices to resellers who lease or resell them to their subscribers. Its Spok Care Connect suite products for contact centers, clinical alerting and notification, mobile communications and messaging, and public safety notifications. In addition, the company provides professional, software license updates, and product support services, as well as sells third-party equipment. It serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014. Spok Holdings, Inc. was founded in 1986 and is headquartered in Alexandria, Virginia.