Financial Analysis: Brightcove (NASDAQ:BCOV) vs. SMC Entertainment (OTCMKTS:SMCE)

SMC Entertainment (OTCMKTS:SMCEGet Free Report) and Brightcove (NASDAQ:BCOVGet Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Risk and Volatility

SMC Entertainment has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, Brightcove has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SMC Entertainment and Brightcove, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SMC Entertainment 0 0 0 0 0.00
Brightcove 0 2 0 0 2.00

Brightcove has a consensus price target of $3.98, suggesting a potential downside of 10.67%. Given Brightcove’s stronger consensus rating and higher possible upside, analysts plainly believe Brightcove is more favorable than SMC Entertainment.

Profitability

This table compares SMC Entertainment and Brightcove’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SMC Entertainment N/A N/A -5,893.58%
Brightcove -4.57% -9.46% -4.20%

Insider & Institutional Ownership

80.1% of Brightcove shares are owned by institutional investors. 41.2% of SMC Entertainment shares are owned by insiders. Comparatively, 4.2% of Brightcove shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares SMC Entertainment and Brightcove”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 ($0.01) -0.12
Brightcove $201.19 million 1.00 -$22.89 million ($0.21) -21.19

SMC Entertainment has higher earnings, but lower revenue than Brightcove. Brightcove is trading at a lower price-to-earnings ratio than SMC Entertainment, indicating that it is currently the more affordable of the two stocks.

About SMC Entertainment

(Get Free Report)

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 Brightcove

(Get Free Report)

Brightcove Inc. provides cloud-based streaming services the Americas, Europe, the Asia Pacific, Japan, India, and the Middle East. It offers Video Cloud, an online video streaming platform that enables its customers to publish, deliver, and distribute high-quality video to internet-connected devices. The company’s solutions and products comprise Brightcove Marketing Studio, a video streaming solution; Brightcove Communications Studio for marketers and corporate communications professionals; Brightcove Media Studio, a solution for over-the-top (OTT) video services, media publishers, and leading broadcasters to monetize their media, live stream at scale, and nurture their audience lifecycle; Brightcove Audience Insights, a customer data platform for video streaming businesses; Zencoder, a cloud-based video encoding service; and Brightcove Beacon, a platform that enables its customers to launch premium OTT video streaming experiences, as well as Brightcove Marketplace. It also provides ad monetization; professional; customer success, support, and documentation; online and onsite training; and video.js and developer solutions. The company serves media companies, broadcasters, digital publishers, sports and entertainment companies, fashion and hospitality brands, faith-based institutions, retail and e-commerce businesses, and technology organizations, as well as government agencies, educational institutions, and non-profit organizations. Brightcove Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.

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