Financial Review: OptimizeRx (NASDAQ:OPRX) vs. SPAR Group (NASDAQ:SGRP)

OptimizeRx (NASDAQ:OPRX) and SPAR Group (NASDAQ:SGRP) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Risk and Volatility

OptimizeRx has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, SPAR Group has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Earnings and Valuation

This table compares OptimizeRx and SPAR Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$62.45 million	3.13	-$11.44 million	($0.80)	-13.45
SPAR Group	$262.75 million	0.17	$3.90 million	$0.17	10.53

SPAR Group has higher revenue and earnings than OptimizeRx. OptimizeRx is trading at a lower price-to-earnings ratio than SPAR Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares OptimizeRx and SPAR Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	-21.88%	-9.24%	-8.71%
SPAR Group	1.48%	12.89%	5.51%

Insider & Institutional Ownership

76.5% of OptimizeRx shares are owned by institutional investors. Comparatively, 9.6% of SPAR Group shares are owned by institutional investors. 4.4% of OptimizeRx shares are owned by insiders. Comparatively, 59.7% of SPAR Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for OptimizeRx and SPAR Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	0	1	5	0	2.83
SPAR Group	0	0	0	0	N/A

OptimizeRx presently has a consensus price target of $15.86, indicating a potential upside of 47.37%. Given OptimizeRx’s higher probable upside, research analysts plainly believe OptimizeRx is more favorable than SPAR Group.

Summary

SPAR Group beats OptimizeRx on 8 of the 13 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, provides various solutions to life sciences organizations, healthcare providers (HCPs), and patients. Its products and applications include Evidence-Based Physician Engagement solution to assist HCPs in identifying patients who may be qualified for specific therapies, raise awareness of patient access pathways, and identify early indicators of non-adherence among patient populations; and Point of Care Banner messaging solution to deliver a variety of awareness and messaging within the clinical workflow. The company also offers Social Network Banner Messaging solution to deliver banner messaging to HCPs within their social network apps; Institutional Account-based Banner Messaging solution that provides its clients access to delivering banner messaging online and on the intranets of targeted health system accounts; and Financial Messaging solution, which provides prescribers visibility to branded copay offers and other patient support programs directly within their electronic health record and/or e-Prescribe systems. In addition, it provides Patient Engagement, a technology solution that provides digital messaging services through its cloud-based Mobile Health Messenger platform; HIPAA-compliant automated mobile messaging platform, which allows pharmaceutical manufactures and related entities to directly engage with patients to enhance regimen compliance; and Therapy Initiation Workflow, a group of digital solutions that focuses on accelerating patient access to treatments where time-consuming medical documentation is required of HCPs prior to pharmacies dispensing prescribed drugs. The company was founded in 2006 and is headquartered in Rochester, Michigan.

About SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services worldwide. The company offers syndicated and dedicated merchandising services at the retail store level for retailers, manufacturers, and distributors; and project services, such as new product launches, special seasonal or promotional merchandising, product support, product recalls, and in-store product demonstrations and in-store product sampling, as well as kiosk product replenishment, inventory control, new and existing store resets, re-merchandising, remodels and category implementations, and under annual or stand-alone project contracts or agreements. It also provides retailer specific services consisting of in-store services, including new store openings, new store sets and existing store resets and remodels, and under annual or stand-alone project contracts or agreements. In addition, the company assembles furniture, grills, and other products in stores, homes, and offices; performs ongoing routed coverage at retail locations; and offers in-home and in-office assembly to customers who purchase their product from retailers. Further, it provides staff and distribution center experienced resources to retailers and consumer goods manufacturers; offers retail compliance and price audit services initiated by retailers and manufacturers and focuses on validating store promotions, auditing compliance with branding and signage, verifying product placement and displays, collecting inventory levels, and out-of-stock status; and competitive price intelligence gathering for retailers, as well as ensuring price accuracy and consistency within the retail itself. The company serves grocery discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive, and office supply stores; pharmacies; and mass merchandisers. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.