OptimizeRx (NASDAQ:OPRX – Get Free Report) and Paltalk (NASDAQ:PALT – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Risk & Volatility
OptimizeRx has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Paltalk has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Insider and Institutional Ownership
76.5% of OptimizeRx shares are owned by institutional investors. Comparatively, 3.9% of Paltalk shares are owned by institutional investors. 6.1% of OptimizeRx shares are owned by insiders. Comparatively, 18.7% of Paltalk shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OptimizeRx | 0 | 1 | 6 | 0 | 2.86 |
| Paltalk | 0 | 1 | 0 | 0 | 2.00 |
OptimizeRx currently has a consensus price target of $10.42, suggesting a potential upside of 91.84%. Paltalk has a consensus price target of $4.50, suggesting a potential upside of 134.38%. Given Paltalk’s higher probable upside, analysts clearly believe Paltalk is more favorable than OptimizeRx.
Earnings & Valuation
This table compares OptimizeRx and Paltalk”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OptimizeRx | $71.52 million | 1.40 | -$17.57 million | ($1.33) | -4.08 |
| Paltalk | $10.98 million | 1.62 | -$1.07 million | ($0.34) | -5.65 |
Paltalk has lower revenue, but higher earnings than OptimizeRx. Paltalk is trading at a lower price-to-earnings ratio than OptimizeRx, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares OptimizeRx and Paltalk’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OptimizeRx | -27.41% | -4.92% | -3.41% |
| Paltalk | -33.40% | -16.94% | -14.15% |
Summary
OptimizeRx beats Paltalk on 9 of the 14 factors compared between the two stocks.
About OptimizeRx
OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.
About Paltalk
Paltalk, Inc., together with its subsidiaries, develops communications software and multimedia social applications worldwide. It offers consumer applications, which include Paltalk, Camfrog, and Tinychat for live video chat; and owns and operates Vumber, a telecommunications services provider that enables users to have multiple phone numbers in any area code through which calls can be forwarded to a user’s existing cell phone or land line telephone number. The company provides ManyCam, a live streaming software and virtual camera that allows users to deliver professional live videos on streaming platforms, video conferencing applications, and distance learning tools; and product payment options, where users can pay by credit card, PayPal, western union, check, local e-wallet providers, or complete an in-app purchase through the Apple App Store or Google Play Store for Android users. The company was formerly known as PeerStream, Inc. and changed its name to Paltalk, Inc. in May 2020. Paltalk, Inc. was incorporated in 2005 and is based in Jericho, New York.
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