Financial Comparison: Clarivate (NYSE:CLVT) and SMC Entertainment (OTCMKTS:SMCE)

SMC Entertainment (OTCMKTS:SMCE) and Clarivate (NYSE:CLVT) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Volatility and Risk

SMC Entertainment has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Valuation and Earnings

This table compares SMC Entertainment and Clarivate”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC Entertainment	N/A	N/A	-$1.56 million	($0.01)	-0.33
Clarivate	$2.56 billion	1.12	-$911.20 million	($0.96)	-4.30

SMC Entertainment has higher earnings, but lower revenue than Clarivate. Clarivate is trading at a lower price-to-earnings ratio than SMC Entertainment, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SMC Entertainment and Clarivate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SMC Entertainment	N/A	N/A	-5,893.58%
Clarivate	-24.90%	9.10%	3.93%

Analyst Ratings

This is a summary of recent ratings and target prices for SMC Entertainment and Clarivate, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC Entertainment	0	0	0	0	0.00
Clarivate	1	2	1	0	2.00

Clarivate has a consensus price target of $5.83, indicating a potential upside of 41.41%. Given Clarivate’s stronger consensus rating and higher probable upside, analysts clearly believe Clarivate is more favorable than SMC Entertainment.

Insider and Institutional Ownership

85.7% of Clarivate shares are owned by institutional investors. 41.2% of SMC Entertainment shares are owned by company insiders. Comparatively, 22.8% of Clarivate shares are owned 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.

Summary

Clarivate beats SMC Entertainment on 8 of the 13 factors compared between the two stocks.

About SMC Entertainment

SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.