Analyzing EngageSmart (NYSE:ESMT) & Infinite Group (OTCMKTS:IMCI)

Infinite Group (OTCMKTS:IMCIGet Rating) and EngageSmart (NYSE:ESMTGet Rating) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Infinite Group and EngageSmart, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infinite Group 0 0 0 0 N/A
EngageSmart 0 2 7 1 2.90

EngageSmart has a consensus target price of $31.39, suggesting a potential upside of 60.39%. Given EngageSmart’s higher possible upside, analysts clearly believe EngageSmart is more favorable than Infinite Group.

Insider & Institutional Ownership

93.8% of EngageSmart shares are owned by institutional investors. 35.0% of Infinite Group shares are owned by insiders. Comparatively, 2.7% of EngageSmart shares are owned by 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.

Profitability

This table compares Infinite Group and EngageSmart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Infinite Group -32.33% N/A -151.50%
EngageSmart N/A N/A N/A

Earnings & Valuation

This table compares Infinite Group and EngageSmart’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Infinite Group $7.22 million 0.70 -$1.57 million ($0.07) -2.14
EngageSmart $216.28 million 14.71 -$8.97 million N/A N/A

Infinite Group has higher earnings, but lower revenue than EngageSmart.

Summary

EngageSmart beats Infinite Group on 8 of the 10 factors compared between the two stocks.

About Infinite Group

(Get Rating)

Infinite Group, Inc. develops cybersecurity software in the United States. It offers Nodeware, a patented software-as-a-service solution that automates network asset identification, and cybersecurity vulnerability management and monitoring; and distributes Webroot, a cloud-based endpoint security platform solution. The company also provides cybersecurity consulting services that include incident response, security awareness training, risk management, IT governance and compliance, security assessment, and penetration testing offerings to channel partners and direct customers for various vertical markets, such as banking, manufacturing, supply chain, and technology. In addition, it offers managed support services related to information security, including troubleshooting, backend analysis, and technical and security support for mission critical technical infrastructure; and sells third party software licenses. The company was formerly known as Infinite Machines Corp. and changed its name to Infinite Group, Inc. in January 1998. Infinite Group, Inc. was incorporated in 1986 and is headquartered in Pittsford, New York.

About EngageSmart

(Get Rating)

EngageSmart, Inc. provides Software-as-a-Service based customer engagement software and integrated payment solutions. It operates through two segments, Enterprise Solutions and SMB (small and medium sized business) Solutions. The company offers SimplePractice, an end-to-end practice management and electronic health record platform for health and wellness professionals to manage their practices; and InvoiceCloud, an electronic bill presentment and payment solution that helps government, utility, and financial services customers to digitize billing, client communications, and collections. It also provides HealthPay24, a patient engagement and payment platform that helps health systems, physician groups, dental practices, and medical billers to drive patient self-pay collections; and DonorDrive, a fundraising software platform that helps non-profits, healthcare organizations, and higher education institutions produce virtual events, launch branded donation campaigns, and create peer-to-peer fundraising experiences. The company was formerly known as EngageSmart, LLC. and changed its name to EngageSmart, Inc. in June 2021. EngageSmart, Inc. was incorporated in 2018 and is headquartered in Braintree, Massachusetts.

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