Autodesk (NASDAQ:ADSK) and Smith Micro Software (NASDAQ:SMSI) Head to Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith Micro Software	-92.60%	-44.59%	-31.78%
Autodesk	21.08%	58.63%	15.10%

Volatility & Risk

Smith Micro Software has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Autodesk has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Insider and Institutional Ownership

20.8% of Smith Micro Software shares are held by institutional investors. Comparatively, 90.2% of Autodesk shares are held by institutional investors. 34.7% of Smith Micro Software shares are held by company insiders. Comparatively, 0.1% of Autodesk shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith Micro Software	$17.36 million	0.75	-$29.33 million	($3.52)	-0.66
Autodesk	$7.21 billion	7.31	$1.12 billion	$7.73	32.63

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

Analyst Ratings

This is a breakdown of current recommendations for Smith Micro Software and Autodesk, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith Micro Software	1	0	2	0	2.33
Autodesk	0	6	25	1	2.84

Smith Micro Software presently has a consensus target price of $12.50, indicating a potential upside of 436.48%. Autodesk has a consensus target price of $316.84, indicating a potential upside of 25.63%. Given Smith Micro Software’s higher probable upside, research analysts clearly believe Smith Micro Software is more favorable than Autodesk.

Summary

Autodesk beats Smith Micro Software on 13 of the 15 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 Autodesk

Autodesk, Inc. provides 3D design, engineering, and entertainment technology solutions worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BuildingConnected, a SaaS preconstruction solution; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry. It sells its products and services to customers directly, as well as through a network of resellers and distributors. Autodesk, Inc. was incorporated in 1982 and is headquartered in San Francisco, California.