Reviewing Simulations Plus (NASDAQ:SLP) and ImageWare Systems (OTCMKTS:IWSY)

ImageWare Systems (OTCMKTS:IWSY) and Simulations Plus (NASDAQ:SLP) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations for ImageWare Systems and Simulations Plus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ImageWare Systems	0	0	0	0	0.00
Simulations Plus	1	6	3	0	2.20

Simulations Plus has a consensus target price of $24.40, indicating a potential upside of 42.61%. Given Simulations Plus’ stronger consensus rating and higher possible upside, analysts clearly believe Simulations Plus is more favorable than ImageWare Systems.

Valuation & Earnings

This table compares ImageWare Systems and Simulations Plus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ImageWare Systems	N/A	N/A	N/A	N/A	N/A
Simulations Plus	$79.18 million	4.37	-$64.72 million	($3.13)	-5.47

ImageWare Systems has higher earnings, but lower revenue than Simulations Plus.

Profitability

This table compares ImageWare Systems and Simulations Plus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ImageWare Systems	N/A	N/A	N/A
Simulations Plus	-77.96%	16.21%	15.00%

Volatility and Risk

ImageWare Systems has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, Simulations Plus has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

2.2% of ImageWare Systems shares are owned by institutional investors. Comparatively, 78.1% of Simulations Plus shares are owned by institutional investors. 37.7% of ImageWare Systems shares are owned by insiders. Comparatively, 19.1% of Simulations Plus shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Simulations Plus beats ImageWare Systems on 7 of the 10 factors compared between the two stocks.

About ImageWare Systems

ImageWare Systems, Inc. operates as a biometric solution provider in the United States and internationally. It offers Imageware Biometric Engine, a biometric identity and authentication database built for multi-biometric enrollment, management, and authentication. The company also provides Imageware Proof that enables an entity to prove user identity from their biometrics, government issued ID, and credit bureau data; Imageware Capture that enables the capture of biographic and biometric details, such as face, fingerprint, palm print, and iris, as well as scars, marks, and tattoos; Imageware Identify, which enables a user to identify others from their biometrics; and Imageware Investigate that enables an officer to create digital lineups. In addition, it offers Imageware Credential that enables a user to design, build, and print badges for access control systems, which includes tickets, smart badges, wristbands, personal identity verification cards, and others; Imageware Digital ID, a decentralized identity service that enables self-sovereign identity underpinned by blockchain technology tied to biometrics; and Imageware Authenticate, which enables users to leverage multimodal biometrics hosted in a central server or cloud to log in to services and applications from a device. Further, the company provides Law Enforcement 2.0 solution which enables state, local, and federal agencies to capture, archive, search, retrieve, and share digital images, fingerprints, and other biometrics, as well as criminal history records on a stand-alone, networked, wireless or browser-based platform. It serves airports and seaports, education, financial, government, healthcare, and law enforcement industries. The company was incorporated in 1987 and is headquartered in San Diego, California.

About Simulations Plus

Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym products. In addition, it offers Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as MonolixSuite products for modeling and simulation that allows for population analyses, rapid clinical trial data analyses, and regulatory submissions. Further, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions; and early drug discovery services. Additionally, it offers creative and insightful consulting services to support its quantitative systems pharmacology/quantitative systems toxicology modelling. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.