Paltalk (NASDAQ:PALT) versus OptimizeRx (NASDAQ:OPRX) Head-To-Head Comparison

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

Analyst Ratings

This is a summary of recent ratings and price targets for Paltalk and OptimizeRx, as reported by MarketBeat.

	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 presently has a consensus target price of $4.50, suggesting a potential upside of 138.10%. OptimizeRx has a consensus target price of $10.42, suggesting a potential upside of 94.34%. Given Paltalk’s higher possible upside, analysts clearly believe Paltalk is more favorable than OptimizeRx.

Valuation and Earnings

This table compares Paltalk and OptimizeRx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paltalk	$9.64 million	1.81	-$1.07 million	($0.34)	-5.56
OptimizeRx	$71.52 million	1.38	-$17.57 million	($1.33)	-4.03

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.

Risk and Volatility

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

Institutional and 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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%

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.