Critical Comparison: SharpSpring (NASDAQ:SHSP) vs. Taoping (NASDAQ:TAOP)

SharpSpring (NASDAQ:SHSP) and Taoping (NASDAQ:TAOP) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Insider & Institutional Ownership

50.1% of SharpSpring shares are owned by institutional investors. Comparatively, 0.3% of Taoping shares are owned by institutional investors. 25.6% of SharpSpring shares are owned by insiders. Comparatively, 45.4% of Taoping 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 SharpSpring and Taoping’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SharpSpring $18.65 million 4.93 -$9.48 million ($1.11) -7.57
Taoping $20.58 million 1.16 $1.69 million $0.04 14.25

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

Profitability

This table compares SharpSpring and Taoping’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SharpSpring -57.95% -51.86% -32.33%
Taoping N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SharpSpring and Taoping, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SharpSpring 0 0 6 0 3.00
Taoping 0 0 0 0 N/A

SharpSpring presently has a consensus target price of $17.33, indicating a potential upside of 106.35%. Given SharpSpring’s higher probable upside, equities research analysts clearly believe SharpSpring is more favorable than Taoping.

Volatility & Risk

SharpSpring has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Taoping has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Summary

Taoping beats SharpSpring on 9 of the 13 factors compared between the two stocks.

About SharpSpring

SharpSpring, Inc. operates as a cloud-based marketing technology company worldwide. The company offers SharpSpring, a marketing automation solution for small and mid-size businesses. It markets and sells its products and services through sales teams and third party resellers. The company was formerly known as SMTP, Inc. and changed its name to SharpSpring, Inc. in December 2015. SharpSpring, Inc. was founded in 1998 and is headquartered in Gainesville, Florida.

About Taoping

Taoping Inc. provides cloud-based platform, resource sharing, and big data solutions to the Chinese new media, education residential community management, and elevator Internet of Things (IoT) industries primarily in the People's Republic of China. The company operates in two segments, Cloud-based Technology and Traditional Information Technology. It offers cloud-based software as a service to automate the interactive workflow between advertising agencies and their customers, including establishing new projects, submitting advertisement proposals, revising and approving advertising proposals, processing payment online, remotely uploading advertisement content, and tracking and analyzing performance data. The company also provides project-based technology products and services for the public sector; and software and hardware with fully integrated solutions, including information technology infrastructure, Internet-enabled display technologies, and IoT platforms to customers in government, education, residential community management, media, transportation, and other private sectors, as well as related maintenance and support services. The company was formerly known as China Information Technology, Inc. and changed its name to Taoping Inc. in June 2018. Taoping Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

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