SMC Entertainment (OTCMKTS:SMCE – Get Free Report) and Applied Digital (NASDAQ:APLD – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
65.7% of Applied Digital shares are owned by institutional investors. 20.5% of Applied Digital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
SMC Entertainment has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Applied Digital has a beta of 4.51, meaning that its stock price is 351% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SMC Entertainment | 0 | 0 | 0 | 0 | N/A |
| Applied Digital | 0 | 0 | 5 | 0 | 3.00 |
Applied Digital has a consensus target price of $8.20, suggesting a potential upside of 153.09%. Given Applied Digital’s higher possible upside, analysts clearly believe Applied Digital is more favorable than SMC Entertainment.
Profitability
This table compares SMC Entertainment and Applied Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SMC Entertainment | N/A | -8.75% | -235.79% |
| Applied Digital | -88.95% | -109.89% | -30.00% |
Earnings and Valuation
This table compares SMC Entertainment and Applied Digital’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SMC Entertainment | N/A | N/A | -$1.56 million | N/A | N/A |
| Applied Digital | $165.58 million | 2.68 | -$44.65 million | ($0.79) | -4.10 |
SMC Entertainment has higher earnings, but lower revenue than Applied Digital.
Summary
Applied Digital beats SMC Entertainment on 7 of the 10 factors compared between the two stocks.
About SMC Entertainment
SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
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