TruGolf (NASDAQ:TRUG) versus Silicon Motion Technology (NASDAQ:SIMO) Critical Review

TruGolf (NASDAQ:TRUG) and Silicon Motion Technology (NASDAQ:SIMO) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

3.2% of TruGolf shares are held by institutional investors. Comparatively, 78.0% of Silicon Motion Technology shares are held by institutional investors. 36.9% of TruGolf shares are held by company insiders. Comparatively, 5.3% of Silicon Motion Technology shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for TruGolf and Silicon Motion Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TruGolf	1	1	2	0	2.25
Silicon Motion Technology	0	1	10	0	2.91

TruGolf presently has a consensus target price of $100.00, suggesting a potential upside of 10,876.95%. Silicon Motion Technology has a consensus target price of $111.25, suggesting a potential upside of 30.16%. Given TruGolf’s higher probable upside, equities research analysts clearly believe TruGolf is more favorable than Silicon Motion Technology.

Earnings & Valuation

This table compares TruGolf and Silicon Motion Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TruGolf	$20.54 million	0.11	-$8.80 million	($53.06)	-0.02
Silicon Motion Technology	$803.55 million	3.61	$89.25 million	$2.91	29.37

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

Risk and Volatility

TruGolf has a beta of -0.99, meaning that its stock price is 199% less volatile than the S&P 500. Comparatively, Silicon Motion Technology has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares TruGolf and Silicon Motion Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TruGolf	-93.14%	-3,808.94%	-61.02%
Silicon Motion Technology	12.27%	12.37%	9.34%

Summary

Silicon Motion Technology beats TruGolf on 12 of the 14 factors compared between the two stocks.

About TruGolf

TruGolf Holdings, Inc., through its subsidiary, engages in the development and sale of indoor golf simulator hardware under the TruGolf Nevada brand for residential and commercial markets in the United States. It also provides E6 Connect software for use on other companies' hardware. The company was founded in 1982 and is headquartered in Centerville, Utah.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. The company was founded in 1995 and is based in Hong Kong, Hong Kong.