Epocrates (NASDAQ: EPOC) and MiX Telematics Limited (NYSE:MIXT) are both small-cap system software companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Epocrates and MiX Telematics Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Epocrates 0 0 0 0 N/A
MiX Telematics Limited 0 2 1 0 2.33

MiX Telematics Limited has a consensus price target of $15.00, suggesting a potential upside of 32.74%. Given MiX Telematics Limited’s higher possible upside, analysts plainly believe MiX Telematics Limited is more favorable than Epocrates.

Dividends

MiX Telematics Limited pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Epocrates does not pay a dividend. MiX Telematics Limited pays out 30.0% of its earnings in the form of a dividend.

Profitability

This table compares Epocrates and MiX Telematics Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Epocrates N/A N/A N/A
MiX Telematics Limited 7.73% 8.99% 6.81%

Insider and Institutional Ownership

20.0% of MiX Telematics Limited shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Epocrates and MiX Telematics Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Epocrates N/A N/A N/A ($0.30) -39.10
MiX Telematics Limited $114.82 million 2.20 $8.65 million $0.40 28.25

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

Summary

MiX Telematics Limited beats Epocrates on 9 of the 10 factors compared between the two stocks.

Epocrates Company Profile

Epocrates, Inc. (Epocrates) is a provider of mobile drug reference tools and electronic health records to healthcare professionals and interactive services to the healthcare industry. As of December 31, 2011, its user network consists of well over one million healthcare professionals, including approximately 340,000, or more than 50% of United States physicians. The Company offers its products on major United States mobile platforms, including Apple iOS, Android and BlackBerry. Epocrates operates in two segments: Subscriptions and Interactive Services, and Electronic Health Records. It uses brand names include DocAlert, Epocrates, Epocrates Honors, Epocrates ID, Epocrates Lab, Epocrates MedTools, Epocrates Rx, Epocrates Rx Pro, Epocrates Dx, Epocrates QuickSurvey, Epocrates QuickRecruit, Epocrates MedInsight, EssentialPoints and MedCafe. In October 2011, it launched a redesign of the drug reference tool to create a new platform that provides healthcare professionals.

MiX Telematics Limited Company Profile

MiX Telematics Limited is a South Africa-based provider of fleet and mobile asset management solutions delivered as Software-as-a-Service (SaaS) to customers. The Company’s operating segments include Africa, Europe, Americas, Middle East and Australasia, Brazil and Central Services Organization. The Company’s products and services provide enterprise fleets, small fleets and consumers with solutions for safety, risk management and security. The Company’s solutions include MiX Fleet Manager, which consists of an on-board computer, an online tracking and information portal, as well as access to fleet and driver reports and analytics; MiX SafeDrive provides In-Vehicle Monitoring Systems (IVMS) that monitor driver performance, identify unsafe behaviors and provide audible alerts; Matrix is focused on personal safety and consumer telematics through vehicle tracking-and-recovery products and services, and Beam-e, which is a wireless device that fits into vehicles, motorbikes or caravan.

Receive News & Ratings for Epocrates Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Epocrates Inc. and related companies with MarketBeat.com's FREE daily email newsletter.