Head-To-Head Comparison: Smith Micro Software (NASDAQ:SMSI) and Tyler Technologies (NYSE:TYL)

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

Institutional & Insider Ownership

20.8% of Smith Micro Software shares are held by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are held by institutional investors. 20.5% of Smith Micro Software shares are held by insiders. Comparatively, 2.2% of Tyler Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Smith Micro Software has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Smith Micro Software and Tyler Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	0	0	1	0	3.00
Tyler Technologies	0	2	12	0	2.86

Smith Micro Software presently has a consensus target price of $5.00, indicating a potential upside of 594.44%. Tyler Technologies has a consensus target price of $642.62, indicating a potential upside of 3.12%. Given Smith Micro Software’s stronger consensus rating and higher probable upside, equities analysts clearly believe Smith Micro Software is more favorable than Tyler Technologies.

Profitability

This table compares Smith Micro Software and Tyler Technologies’ 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%
Tyler Technologies	11.39%	9.79%	6.34%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Micro Software	$40.86 million	0.21	-$24.40 million	($5.20)	-0.14
Tyler Technologies	$1.95 billion	13.67	$165.92 million	$5.48	113.71

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

Summary

Tyler Technologies beats Smith Micro Software on 10 of the 13 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 Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.