Wetouch Technology (NASDAQ:WETH) & Smith Micro Software (NASDAQ:SMSI) Head-To-Head Comparison

Smith Micro Software (NASDAQ:SMSI) and Wetouch Technology (NASDAQ:WETH) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Risk & Volatility

Smith Micro Software has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Wetouch Technology has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Smith Micro Software and Wetouch Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	1	0	0	0	1.00
Wetouch Technology	0	1	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Micro Software	-158.88%	-44.44%	-35.89%
Wetouch Technology	17.10%	5.73%	5.53%

Earnings and Valuation

This table compares Smith Micro Software and Wetouch Technology”s 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	0.72	-$48.70 million	($1.56)	-0.38
Wetouch Technology	$42.28 million	0.50	$6.03 million	$0.62	2.87

Wetouch Technology has higher revenue and earnings than Smith Micro Software. Smith Micro Software is trading at a lower price-to-earnings ratio than Wetouch Technology, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

20.8% of Smith Micro Software shares are held by institutional investors. 29.8% of Smith Micro Software shares are held by company insiders. Comparatively, 0.1% of Wetouch Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Wetouch Technology beats Smith Micro Software on 8 of the 12 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 Wetouch Technology

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. The company offers various touch panels, including glass-glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; glass-film-film products that are used in GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; plastic-glass for use in GPS/entertainment panels, motor vehicle GPS, smart home products, robots, and charging stations; and glass-films used in industrial HMI. Wetouch Technology Inc. was founded in 2011 and is based in Meishan, China.