Smith Micro Software (NASDAQ:SMSI – Get Free Report) and Ceridian HCM (NYSE:CDAY – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Risk and Volatility
Smith Micro Software has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Ceridian HCM has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.
Profitability
This table compares Smith Micro Software and Ceridian HCM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smith Micro Software | -210.99% | -36.69% | -30.78% |
| Ceridian HCM | 0.28% | 2.03% | 0.51% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith Micro Software | 0 | 0 | 1 | 0 | 3.00 |
| Ceridian HCM | 0 | 0 | 0 | 0 | 0.00 |
Smith Micro Software presently has a consensus price target of $5.00, indicating a potential upside of 346.43%. Given Smith Micro Software’s stronger consensus rating and higher probable upside, research analysts plainly believe Smith Micro Software is more favorable than Ceridian HCM.
Valuation & Earnings
This table compares Smith Micro Software and Ceridian HCM”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smith Micro Software | $20.56 million | 0.97 | -$24.40 million | ($4.73) | -0.24 |
| Ceridian HCM | $1.45 billion | 6.22 | -$73.40 million | $0.03 | 1,927.00 |
Smith Micro Software has higher earnings, but lower revenue than Ceridian HCM. Smith Micro Software is trading at a lower price-to-earnings ratio than Ceridian HCM, 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. 20.5% of Smith Micro Software shares are held by company insiders. Comparatively, 4.5% of Ceridian HCM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Ceridian HCM beats Smith Micro Software on 8 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 Ceridian HCM
Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides Bureau solutions for payroll and payroll-related services. It sells its solutions through direct sales force and third-party channels. The company was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.
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