CommVault Systems (NASDAQ:CVLT – Get Free Report) and Smith Micro Software (NASDAQ:SMSI – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Profitability
This table compares CommVault Systems and Smith Micro Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CommVault Systems | 7.70% | 30.83% | 9.05% |
| Smith Micro Software | -166.15% | -45.16% | -37.14% |
Volatility and Risk
CommVault Systems has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CommVault Systems | $995.62 million | 7.62 | $76.11 million | $1.80 | 94.84 |
| Smith Micro Software | $20.56 million | 0.74 | -$48.70 million | ($1.85) | -0.38 |
CommVault Systems has higher revenue and earnings than Smith Micro Software. Smith Micro Software is trading at a lower price-to-earnings ratio than CommVault Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for CommVault Systems and Smith Micro Software, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CommVault Systems | 0 | 3 | 8 | 1 | 2.83 |
| Smith Micro Software | 1 | 0 | 1 | 0 | 2.00 |
CommVault Systems currently has a consensus price target of $211.67, suggesting a potential upside of 23.98%. Smith Micro Software has a consensus price target of $5.00, suggesting a potential upside of 604.23%. Given Smith Micro Software’s higher probable upside, analysts clearly believe Smith Micro Software is more favorable than CommVault Systems.
Institutional & Insider Ownership
93.5% of CommVault Systems shares are owned by institutional investors. Comparatively, 20.8% of Smith Micro Software shares are owned by institutional investors. 1.0% of CommVault Systems shares are owned by insiders. Comparatively, 29.8% of Smith Micro Software shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
CommVault Systems beats Smith Micro Software on 12 of the 15 factors compared between the two stocks.
About CommVault Systems
Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.
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.
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