Leafly (NASDAQ:LFLY) vs. Smith Micro Software (NASDAQ:SMSI) Critical Review

Leafly (NASDAQ:LFLY) and Smith Micro Software (NASDAQ:SMSI) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Leafly and Smith Micro Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leafly	0	0	2	0	3.00
Smith Micro Software	0	0	1	0	3.00

Leafly presently has a consensus price target of $7.59, indicating a potential upside of 383.44%. Smith Micro Software has a consensus price target of $5.00, indicating a potential upside of 244.83%. Given Leafly’s higher possible upside, equities research analysts plainly believe Leafly is more favorable than Smith Micro Software.

Volatility and Risk

Leafly has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Earnings & Valuation

This table compares Leafly and Smith Micro Software”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leafly	$35.87 million	0.13	-$9.50 million	($2.32)	-0.68
Smith Micro Software	$24.18 million	0.71	-$24.40 million	($5.20)	-0.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Leafly	-14.65%	N/A	-25.26%
Smith Micro Software	-210.99%	-36.69%	-30.78%

Institutional & Insider Ownership

15.6% of Leafly shares are owned by institutional investors. Comparatively, 20.8% of Smith Micro Software shares are owned by institutional investors. 7.6% of Leafly shares are owned by company insiders. Comparatively, 20.5% of Smith Micro Software shares are owned by company 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.

Summary

Leafly beats Smith Micro Software on 9 of the 13 factors compared between the two stocks.

About Leafly

Leafly Holdings, Inc. owns and operates a platform to provide consumers with cannabis information and connects consumers to cannabis brands and licensed retailers. The company offers subscription-based marketplace listings, digital advertising solutions, and software as a service-based tools to cannabis retailers; and information, reviews, menus, and ordering and delivery options to its audience through its website and mobile applications. Leafly Holdings, Inc. was founded in 2010 and is headquartered in Seattle, Washington.

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.