Critical Contrast: Bentley Systems (NASDAQ:BSY) versus Smith Micro Software (NASDAQ:SMSI)

Bentley Systems (NASDAQ:BSY) and Smith Micro Software (NASDAQ:SMSI) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bentley Systems and Smith Micro Software, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bentley Systems	1	2	7	0	2.60
Smith Micro Software	0	0	1	0	3.00

Bentley Systems currently has a consensus price target of $52.00, suggesting a potential upside of 4.52%. Smith Micro Software has a consensus price target of $5.00, suggesting a potential upside of 455.74%. Given Smith Micro Software’s stronger consensus rating and higher possible upside, analysts plainly believe Smith Micro Software is more favorable than Bentley Systems.

Earnings & Valuation

This table compares Bentley Systems and Smith Micro Software”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bentley Systems	$1.39 billion	10.48	$326.71 million	$0.79	62.97
Smith Micro Software	$19.38 million	0.90	-$24.40 million	($1.73)	-0.52

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

Volatility & Risk

Bentley Systems has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bentley Systems	27.73%	29.50%	8.49%
Smith Micro Software	-210.99%	-36.69%	-30.78%

Insider and Institutional Ownership

44.2% of Bentley Systems shares are owned by institutional investors. Comparatively, 20.8% of Smith Micro Software shares are owned by institutional investors. 20.6% of Bentley Systems shares are owned by insiders. Comparatively, 20.5% of Smith Micro Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Bentley Systems beats Smith Micro Software on 12 of the 14 factors compared between the two stocks.

About Bentley Systems

Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling engineering applications, such as MicroStation, OpenBridge, OpenBuildings, OpenCities, OpenComms, OpenFlows, OpenPlant, OpenRail, OpenRoads, OpenSite, OpenTower, OpenTunnel, OpenUtilities, and OpenWindowPower; and open simulation engineering applications, including ADINA, AutoPIPE, CUBE, DYNAMEQ, EMME, LEGION, Power Line Systems, RAM, SACS, SPIDA, and STAAD; and geoprofessional applications for modeling and simulation of near and deep subsurface conditions, including AGS, Central, GeoStudio, Imago, Leapfrog, MX Deposit, Oasis montaj, OpenGround, and PLAXIS. It also provides infrastructure cloud applications, such as ProjectWise, SYNCHRO, and AssetWise, as well as iTwin platform that enables users to create and curate cloud native 4D/5D digital representations of physical infrastructure assets consisting of iTwin Capture, iTwin Experience, and iTwin IoT platforms. The company serves civil, structural, geotechnical, subsurface, process engineers, architects, geospatial professionals, city and regional planners, contractors, fabricators, and operations and maintenance engineers. Bentley Systems, Incorporated was incorporated in 1984 and is headquartered in Exton, Pennsylvania.

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.