OptimizeRx (NASDAQ:OPRX) & Paltalk (NASDAQ:PALT) Head to Head Contrast

Paltalk (NASDAQ:PALT) and OptimizeRx (NASDAQ:OPRX) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Risk & Volatility

Paltalk has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Profitability

This table compares Paltalk and OptimizeRx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paltalk	-33.40%	-16.94%	-14.15%
OptimizeRx	-27.41%	-4.92%	-3.41%

Earnings and Valuation

This table compares Paltalk and OptimizeRx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paltalk	$9.64 million	1.85	-$1.07 million	($0.34)	-5.68
OptimizeRx	$71.52 million	1.42	-$17.57 million	($1.33)	-4.14

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Paltalk and OptimizeRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paltalk	0	1	0	0	2.00
OptimizeRx	0	1	6	0	2.86

Paltalk currently has a consensus target price of $4.50, indicating a potential upside of 133.16%. OptimizeRx has a consensus target price of $10.42, indicating a potential upside of 89.39%. Given Paltalk’s higher probable upside, analysts plainly believe Paltalk is more favorable than OptimizeRx.

Institutional & Insider Ownership

3.9% of Paltalk shares are owned by institutional investors. Comparatively, 76.5% of OptimizeRx shares are owned by institutional investors. 18.7% of Paltalk shares are owned by company insiders. Comparatively, 6.1% of OptimizeRx shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

OptimizeRx beats Paltalk on 9 of the 14 factors compared between the two stocks.

About Paltalk

Paltalk, Inc., together with its subsidiaries, develops communications software and multimedia social applications worldwide. It offers consumer applications, which include Paltalk, Camfrog, and Tinychat for live video chat; and owns and operates Vumber, a telecommunications services provider that enables users to have multiple phone numbers in any area code through which calls can be forwarded to a user’s existing cell phone or land line telephone number. The company provides ManyCam, a live streaming software and virtual camera that allows users to deliver professional live videos on streaming platforms, video conferencing applications, and distance learning tools; and product payment options, where users can pay by credit card, PayPal, western union, check, local e-wallet providers, or complete an in-app purchase through the Apple App Store or Google Play Store for Android users. The company was formerly known as PeerStream, Inc. and changed its name to Paltalk, Inc. in May 2020. Paltalk, Inc. was incorporated in 2005 and is based in Jericho, New York.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.