Critical Survey: SofTech (OTCMKTS:SOFT) & OptimizeRx (NASDAQ:OPRX)

OptimizeRx (NASDAQ:OPRX) and SofTech (OTCMKTS:SOFT) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Volatility & Risk

OptimizeRx has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, SofTech has a beta of -1.52, suggesting that its share price is 252% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for OptimizeRx and SofTech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	1	6	1	2.78
SofTech	0	0	0	0	0.00

OptimizeRx currently has a consensus target price of $17.57, suggesting a potential upside of 162.26%. Given OptimizeRx’s stronger consensus rating and higher probable upside, analysts clearly believe OptimizeRx is more favorable than SofTech.

Earnings & Valuation

This table compares OptimizeRx and SofTech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$109.43 million	1.15	$5.13 million	$0.26	25.77
SofTech	N/A	N/A	N/A	N/A	N/A

OptimizeRx has higher revenue and earnings than SofTech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	4.69%	10.61%	7.54%
SofTech	N/A	N/A	N/A

Institutional and Insider Ownership

76.5% of OptimizeRx shares are owned by institutional investors. 5.6% of OptimizeRx shares are owned by insiders. Comparatively, 28.6% of SofTech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

OptimizeRx beats SofTech on 10 of the 11 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 SofTech

SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation’s Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.