Enfusion (NYSE:ENFN – Get Rating) and Smith Micro Software (NASDAQ:SMSI – Get Rating) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Profitability
This table compares Enfusion and Smith Micro Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enfusion | -4.90% | 3.80% | 3.37% |
| Smith Micro Software | -63.51% | -27.22% | -21.96% |
Valuation and Earnings
This table compares Enfusion and Smith Micro Software’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enfusion | $150.35 million | 6.21 | -$7.65 million | ($0.10) | -80.99 |
| Smith Micro Software | $48.51 million | 1.38 | -$29.28 million | ($0.55) | -2.07 |
Insider and Institutional Ownership
49.4% of Enfusion shares are owned by institutional investors. Comparatively, 16.0% of Smith Micro Software shares are owned by institutional investors. 40.1% of Enfusion shares are owned by company insiders. Comparatively, 12.1% of Smith Micro Software shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Enfusion and Smith Micro Software, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enfusion | 1 | 3 | 1 | 0 | 2.00 |
| Smith Micro Software | 0 | 1 | 3 | 0 | 2.75 |
Enfusion currently has a consensus target price of $11.42, indicating a potential upside of 40.95%. Smith Micro Software has a consensus target price of $3.65, indicating a potential upside of 220.18%. Given Smith Micro Software’s stronger consensus rating and higher possible upside, analysts clearly believe Smith Micro Software is more favorable than Enfusion.
Risk and Volatility
Enfusion has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Summary
Enfusion beats Smith Micro Software on 9 of the 14 factors compared between the two stocks.
About Enfusion
Enfusion, Inc. provides software-as-a-service solutions for investment management industry in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It provides portfolio management system, which generates a real-time investment book of record that consists of valuation and risk tools that allows users to analyze aggregated or decomposed portfolio data for chief investment officers (CIOs) and portfolio managers; and order and execution management system that enables portfolio managers, traders, compliance teams, and analysts to electronically communicate trade orders for a variety of asset classes, manage trade orders, and systemically enforce trading regulations and internal guidelines. The company also offers accounting/general ledger system, a real-time accounting book of record for chief financial officers, chief operating officers, accountants, and operations teams; Enfusion analytics system, which enables CIOs, portfolio managers, traders, and analysts to analyze portfolios through time horizons and automate customized visualized reports for internal and external stakeholders; and technology-powered and managed services. Enfusion Inc. was incorporated in 2021 and is headquartered in Chicago, Illinois.
About Smith Micro Software
Smith Micro Software, Inc. engages in the provision of software solutions. It offers wireless internet solutions which enable access to information and entertainment. Its products include SafePath Family, SafePath IoT, SafePath Home, CommSuite VVM, CommSuite VTT, and ViewSpot. The company was founded by William W. Smith Jr. on November 30, 1982 and is headquartered in Pittsburgh, PA.
Receive News & Ratings for Enfusion Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enfusion and related companies with MarketBeat.com's FREE daily email newsletter.
