Critical Review: Scientific Learning (OTCMKTS:SCIL) & Mitek Systems (NASDAQ:MITK)

Mitek Systems (NASDAQ:MITK) and Scientific Learning (OTCMKTS:SCIL) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

83.6% of Mitek Systems shares are owned by institutional investors. 2.2% of Mitek Systems shares are owned by company insiders. Comparatively, 16.1% of Scientific Learning shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Mitek Systems and Scientific Learning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitek Systems	11.39%	19.16%	11.32%
Scientific Learning	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Mitek Systems and Scientific Learning, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitek Systems	0	1	1	1	3.00
Scientific Learning	0	0	0	0	0.00

Mitek Systems currently has a consensus price target of $19.33, suggesting a potential upside of 2.56%. Given Mitek Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Mitek Systems is more favorable than Scientific Learning.

Earnings and Valuation

This table compares Mitek Systems and Scientific Learning”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitek Systems	$179.69 million	4.73	$8.80 million	$0.47	40.11
Scientific Learning	N/A	N/A	N/A	N/A	N/A

Mitek Systems has higher revenue and earnings than Scientific Learning.

Summary

Mitek Systems beats Scientific Learning on 9 of the 10 factors compared between the two stocks.

About Mitek Systems

Mitek Systems, Inc. provides mobile image capture and digital identity verification solutions worldwide. Its product portfolio includes Mobile Deposit that enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile websites, and desktop applications; and Mobile Fill, which includes automatic image capture, minimizes the numbers of clicks, and expedites form fill completion. The company also offers MiSnap, a mobile-capture software development kit that enables an intuitive user experience and instant capture of quality images of identity documents and checks. CheckReader enables financial institutions to automatically extract data from checks once they have been scanned or photographed by the application; Check Fraud Defender, an AI-powered and cloud-hosted model for fighting check fraud; and Check Intelligence that enables financial institutions to automatically extract data from a check image received across any deposit channel, including branch, ATM, remote deposit capture, and mobile. In addition, it provides MiVIP, an end-to-end KYC platform that allows companies to design, build, and deploy robust KYC journeys with little or no development resources; and MiPass provides protection against most sophisticated forms of identity theft and dangerous fraud techniques, such as deepfakes and synthetic identities. Further, the company provides ID_CLOUD, an automated identity verification solution that is integrated into a customers’ application to read and validate identity documents; IDLive Face, a passive facial liveness detection product; IDVoice, a robust AI-driven voice biometric engine; IDLive Voice to stop spoofing attacks on voice biometric systems; and IDLive Doc that works to fight fraud related to digitally displayed document images. The company was incorporated in 1986 and is based in San Diego, California.

About Scientific Learning

Scientific Learning Corporation, an education company, develops, distributes, and licenses technology that accelerates learning by enhancing the processing efficiency of the brain. Its flagship Fast ForWord, a Web-based product, comprises Fast ForWord Language for elementary learners and Fast ForWord Literacy for adolescent learners that build foundational reading and language skills to help districts move below grade level learners to learn in the general classroom, and Fast ForWord Reading, which builds learning capacity through developing cognitive skills using exercises focusing on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and comprehension. The company also provides Reading Assistant that offers a one-on-one reading tutor for learners; ResultsNow!, an online hosting and support solution for its Fast ForWord and Reading Assistant products; and BrainPro services targeted at learners who are below grade level. In addition, it offers on-site product training, technical installation, implementation management, consulting, and Web-based synchronous and asynchronous professional development services; and software technical update releases, as well as extensive telephone, email, and chat support services. The company offers learning solutions primarily to educational institutions, speech and language clinics, learning centers, and parents. Scientific Learning Corporation was founded in 1995 and is headquartered in Oakland, California.