Financial Survey: Datasea (NASDAQ:DTSS) vs. Smith Micro Software (NASDAQ:SMSI)

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

Earnings & Valuation

This table compares Smith Micro Software and Datasea”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Micro Software	$17.36 million	0.85	-$29.33 million	($3.52)	-0.75
Datasea	$40.70 million	0.22	-$2.13 million	($0.32)	-2.62

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

Institutional & Insider Ownership

20.8% of Smith Micro Software shares are held by institutional investors. Comparatively, 82.1% of Datasea shares are held by institutional investors. 34.7% of Smith Micro Software shares are held by insiders. Comparatively, 50.6% of Datasea shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Micro Software	-92.60%	-44.59%	-31.78%
Datasea	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Smith Micro Software and Datasea, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	1	0	2	0	2.33
Datasea	1	0	0	0	1.00

Smith Micro Software presently has a consensus target price of $12.50, suggesting a potential upside of 371.70%. Given Smith Micro Software’s stronger consensus rating and higher probable upside, analysts clearly believe Smith Micro Software is more favorable than Datasea.

Volatility & Risk

Smith Micro Software has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Datasea has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Summary

Datasea beats Smith Micro Software on 9 of the 14 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 Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.