My understanding is that SIMs do the lion's share of recruiting prior to the first cycle. After that, no additional recruiting dollars get spent by SIMs until a few cycles after the signing period starts. Knowing that, if a recruit is considering a SIM, you should be able to beat them. I often see a recruit considering a SIM as a recruiting target. The key is to start spending before the recruit gets "definitely leaning", "tight" or becomes a "high priority" for that SIM. Other coaches may avoid that recruit because they don't want to pay extra to beat the SIM, only to end up in a battle with a human-coached team (much more expensive to win).
I don't coach in D1, yet, but I would assume that, unless the SIM has a significant prestige advantage, you should be able to win the battle. On the other hand, most SIM recruits are not that great (or at least are far less likely to have big upside).