ARB IOT Group (NASDAQ:ARBB) vs. Simulations Plus (NASDAQ:SLP) Head to Head Analysis

ARB IOT Group (NASDAQ:ARBB) and Simulations Plus (NASDAQ:SLP) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares ARB IOT Group and Simulations Plus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARB IOT Group	N/A	N/A	N/A
Simulations Plus	14.15%	6.16%	5.68%

Institutional and Insider Ownership

14.8% of ARB IOT Group shares are owned by institutional investors. Comparatively, 78.1% of Simulations Plus shares are owned by institutional investors. 20.9% of Simulations Plus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares ARB IOT Group and Simulations Plus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARB IOT Group	$12.32 million	1.09	-$11.65 million	N/A	N/A
Simulations Plus	$70.01 million	9.11	$9.95 million	$0.49	64.84

Simulations Plus has higher revenue and earnings than ARB IOT Group.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ARB IOT Group and Simulations Plus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARB IOT Group	0	0	0	0	0.00
Simulations Plus	0	1	5	1	3.00

Simulations Plus has a consensus price target of $51.40, suggesting a potential upside of 61.79%. Given Simulations Plus’ stronger consensus rating and higher probable upside, analysts clearly believe Simulations Plus is more favorable than ARB IOT Group.

Volatility & Risk

ARB IOT Group has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, Simulations Plus has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Summary

Simulations Plus beats ARB IOT Group on 12 of the 13 factors compared between the two stocks.

About ARB IOT Group

ARB IOT Group Limited, through its subsidiaries, provides Internet of Things (IoT) system solutions, and system integration and support services in Malaysia. It offers IoT smart home and building solutions, such as design, procurement, and provision of smart home products and devices; integration services; and electrical wire installation and home data network setup for homeowners, as well as provides smart building solutions, including design, procurement, installation, testing, pre-commissioning and commissioning of various IoT systems, solutions, and devices; and integration of automated systems for smart buildings, including installation of wire and wireless, and mechatronic works for property developers and contractors. The company offers IoT smart agriculture solutions, such as designing the layout of the smart farm for the application and integration of IoT in farming and hydroponics, which includes the procurement of sensors and surveillance cameras, as well as other hardware for farm; designing of software to enable transfer of data from the smart farm to a cloud server, which can then be accessed remotely through smart devices; installing, testing, and commissioning of the hardware and software; and after-sales services comprising data analytics and periodic maintenance services. In addition, it provides IoT system development solutions, including procuring, supplying, and delivering industrial building systems for construction projects; and IoT gadget distribution solutions comprising supply chain and distribution of smart phones, accessories, and ICT and IoT products, as well as provides shipping tracking and status updates, customer care line, online chat support, digital marketing, pre-installation, and warranty services. The company was incorporated in 2022 and is based in Kuala Lumpur, Malaysia. ARB IOT Group Limited is a subsidiary of ARB Berhad.

About Simulations Plus

Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. The company also provides products based on mechanistic and mathematical models, such as DILIsym, NAFLDsym, ILDsym, RENAsym, IPFsym, and MITOsym products. In addition, it offers Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as MonolixSuite products for modeling and simulation that allows for population analyses, rapid clinical trial data analyses, and regulatory submissions. Further, the company provides clinical-pharmacology-based consulting services, which includes population pharmacokinetic and pharmacodynamic modeling, exposure-response analyses, clinical trial simulations, data programming, and technical writing services in support of regulatory submissions; and early drug discovery services. Additionally, it offers creative and insightful consulting services to support its quantitative systems pharmacology/quantitative systems toxicology modelling. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.