Trend Micro (OTCMKTS:TMICY) & Smith Micro Software (NASDAQ:SMSI) Critical Survey

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

Institutional and Insider Ownership

0.1% of Trend Micro shares are held by institutional investors. Comparatively, 20.8% of Smith Micro Software shares are held by institutional investors. 34.7% of Smith Micro Software shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Trend Micro has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Earnings and Valuation

This table compares Trend Micro and Smith Micro Software”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trend Micro	$1.85 billion	2.74	$231.30 million	$1.88	20.62
Smith Micro Software	$17.36 million	1.34	-$29.33 million	($6.90)	-0.66

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trend Micro	13.23%	30.36%	9.32%
Smith Micro Software	-165.35%	-55.78%	-41.02%

Analyst Ratings

This is a breakdown of current recommendations for Trend Micro and Smith Micro Software, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trend Micro	1	0	0	1	2.50
Smith Micro Software	1	0	1	0	2.00

Smith Micro Software has a consensus target price of $12.50, indicating a potential upside of 174.73%. Given Smith Micro Software’s higher probable upside, analysts plainly believe Smith Micro Software is more favorable than Trend Micro.

Summary

Trend Micro beats Smith Micro Software on 11 of the 15 factors compared between the two stocks.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.

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.