A drill bit analysis and optimization system for use in a wellbore is provided. The system includes a drill bit including a cutter, a sensor that collects a data signal on a surface of the drill bit proximate to the cutter, and a signal processor unit that receives the data signal from the sensor and receives the expected drilling properties from the data reservoir. The processor analyzes the data signal to detect a resistivity profile from the sensor through a formation and optimizes a drilling parameter by comparing actual drilling properties with expected drilling properties.