Contrasting Simulations Plus (NASDAQ:SLP) & Celerity Solutions (OTCMKTS:CLTY)

Simulations Plus (NASDAQ:SLP) and Celerity Solutions (OTCMKTS:CLTY) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

78.1% of Simulations Plus shares are held by institutional investors. 19.4% of Simulations Plus shares are held by company insiders. Comparatively, 32.3% of Celerity Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Simulations Plus and Celerity Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simulations Plus	$80.38 million	4.31	$9.95 million	($3.15)	-5.47
Celerity Solutions	N/A	N/A	N/A	N/A	N/A

Simulations Plus has higher revenue and earnings than Celerity Solutions.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Simulations Plus and Celerity Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simulations Plus	1	5	4	0	2.30
Celerity Solutions	0	0	0	0	0.00

Simulations Plus currently has a consensus price target of $24.40, indicating a potential upside of 41.61%. Given Simulations Plus’ stronger consensus rating and higher possible upside, analysts clearly believe Simulations Plus is more favorable than Celerity Solutions.

Profitability

This table compares Simulations Plus and Celerity Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simulations Plus	-78.63%	11.62%	10.84%
Celerity Solutions	N/A	N/A	N/A

Summary

Simulations Plus beats Celerity Solutions on 7 of the 9 factors compared between the two stocks.

About Simulations Plus

Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym products. In addition, it offers Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as MonolixSuite products for modeling and simulation that allows for population analyses, rapid clinical trial data analyses, and regulatory submissions. Further, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions; and early drug discovery services. Additionally, it offers creative and insightful consulting services to support its quantitative systems pharmacology/quantitative systems toxicology modelling. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.

About Celerity Solutions

Celerity Solutions, Inc. provides enterprise applications solutions. The company offers its applications in various areas, such as finance, human capital management, manufacturing, mergers and acquisitions, sales operations efficiency, supply chain, utilities, and Web retail. Celerity Solutions, Inc. was incorporated in 1982 and is based in Redwood City, California.