Analyzing Liberty Latin America (NASDAQ:LILAK) and Simulated Environment Concepts (OTCMKTS:SMEV)

Simulated Environment Concepts (OTCMKTS:SMEV) and Liberty Latin America (NASDAQ:LILAK) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Profitability

This table compares Simulated Environment Concepts and Liberty Latin America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simulated Environment Concepts	N/A	N/A	N/A
Liberty Latin America	-13.02%	-27.22%	-4.41%

Volatility and Risk

Simulated Environment Concepts has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Valuation & Earnings

This table compares Simulated Environment Concepts and Liberty Latin America”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simulated Environment Concepts	N/A	N/A	N/A	N/A	N/A
Liberty Latin America	$4.47 billion	0.29	-$73.60 million	($2.93)	-2.26

Simulated Environment Concepts has higher earnings, but lower revenue than Liberty Latin America.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Simulated Environment Concepts and Liberty Latin America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simulated Environment Concepts	0	0	0	0	0.00
Liberty Latin America	0	1	2	0	2.67

Liberty Latin America has a consensus target price of $10.27, indicating a potential upside of 54.85%. Given Liberty Latin America’s stronger consensus rating and higher possible upside, analysts clearly believe Liberty Latin America is more favorable than Simulated Environment Concepts.

Insider and Institutional Ownership

0.2% of Simulated Environment Concepts shares are held by institutional investors. Comparatively, 53.0% of Liberty Latin America shares are held by institutional investors. 62.6% of Simulated Environment Concepts shares are held by company insiders. Comparatively, 9.7% of Liberty Latin America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Simulated Environment Concepts

Simulated Environment Concepts, Inc. engages in the development and manufacture of medical, health, and wellness equipments in the United States and internationally. Its products include SpaCapsule, a robotic massage therapy system used for medical rehabilitation, relaxation, weight loss, slimming, cellulite management, and general wellness; and PTjetCapsule. The company also offers components, parts, accessories, and peripheral massage and health related items. Its products are used in various environments, such as corporate employee lounges, relaxation centers, gyms and health clubs, doctor's offices, hotels, tanning and beauty salons/spas, luxury accommodations, gulf clubs, ski lounges, shopping centers and malls, airports, cruise ships, luxury yachts, and homes. Simulated Environment Concepts, Inc. was founded in 1993 and is based in Miami, Florida.

About Liberty Latin America

Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.