Top Image Systems (NASDAQ: TISA) and Mitek Systems (NASDAQ:MITK) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Profitability

This table compares Top Image Systems and Mitek Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Top Image Systems -22.20% -40.66% -19.24%
Mitek Systems 12.89% 6.68% 5.47%

Valuation & Earnings

This table compares Top Image Systems and Mitek Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Top Image Systems $29.67 million 0.63 -$6.58 million ($0.37) -2.76
Mitek Systems $45.39 million 7.26 $14.09 million $0.21 44.76

Mitek Systems has higher revenue and earnings than Top Image Systems. Top Image Systems is trading at a lower price-to-earnings ratio than Mitek Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Top Image Systems and Mitek Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Top Image Systems 0 0 1 0 3.00
Mitek Systems 0 0 4 0 3.00

Top Image Systems currently has a consensus target price of $3.00, suggesting a potential upside of 194.12%. Mitek Systems has a consensus target price of $12.25, suggesting a potential upside of 30.32%. Given Top Image Systems’ higher possible upside, equities research analysts plainly believe Top Image Systems is more favorable than Mitek Systems.

Institutional & Insider Ownership

3.8% of Top Image Systems shares are held by institutional investors. Comparatively, 45.9% of Mitek Systems shares are held by institutional investors. 8.5% of Mitek Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Top Image Systems has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Mitek Systems has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Summary

Mitek Systems beats Top Image Systems on 11 of the 13 factors compared between the two stocks.

Top Image Systems Company Profile

Top Image Systems Ltd. develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees worldwide. Its solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. The company's products integrate information regardless of the source and format of the data, such as invoices, purchase orders, checks, freight and shipping bills, and others. Its solutions deliver the extracted data to applications comprising document and content management, enterprise resource planning, or customer relationship management. The company develops and markets its software solutions to a range of customers that automatically classifies, recognizes, and understands data processed into the organization systems. It processes, validates, and integrates data into ERP, CRM, and workflow systems. Its eFLOW Unified Content platform solution performs business-critical key data capture, lying within incoming documents, such as paper forms, eForms, fax, image files, microfiche, and electronic. The company serves end-user customers, value-added resellers, distributors, and system integrators. Top Image Systems Ltd. was founded in 1991 and is headquartered in Ramat Gan, Israel.

Mitek Systems Company Profile

Mitek Systems, Inc. develops, markets, and sells mobile image capture and identity verification software solutions for enterprise customers worldwide. The company's solutions are embedded in native mobile apps and mobile optimized Websites to enhance mobile user experiences and transactions. It offers Mobile Deposit that allows individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that can be integrated into mobile apps, mobile Websites, and desktop applications; Mobile Fill to pre-fill forms with personal data by simply snapping a picture of the consumer's driver license, credit card, or other document; Mobile Docs, a mobile document scanning solution; and MiSnap Multi-Check Capture, a software development kit that banks embed in their business banking app that facilitates capture of various checks in one deposit session. The company markets and sells its solutions primarily to banks, credit unions, lenders, payments processers, card issuers, insurers, etc. through direct sales teams and channel partners. Mitek Systems, Inc. was founded in 1983 and is headquartered in San Diego, California.

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