Analyzing Audioeye (AEYE) & The Competition

Audioeye (NASDAQ: AEYE) is one of 196 publicly-traded companies in the “Prepackaged software” industry, but how does it contrast to its peers? We will compare Audioeye to similar businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.

Volatility & Risk

Audioeye has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Audioeye’s peers have a beta of -9.82, meaning that their average stock price is 1,082% less volatile than the S&P 500.

Valuation & Earnings

This table compares Audioeye and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Audioeye $2.74 million -$5.60 million -6.03
Audioeye Competitors $1.84 billion $203.07 million -8.25

Audioeye’s peers have higher revenue and earnings than Audioeye. Audioeye is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Audioeye and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Audioeye -133.78% -205.33% -111.00%
Audioeye Competitors -9.89% -47.09% -2.75%

Insider & Institutional Ownership

4.2% of Audioeye shares are held by institutional investors. Comparatively, 58.1% of shares of all “Prepackaged software” companies are held by institutional investors. 26.0% of Audioeye shares are held by company insiders. Comparatively, 21.3% of shares of all “Prepackaged software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Audioeye and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Audioeye 0 0 2 0 3.00
Audioeye Competitors 1574 7368 13783 656 2.58

Audioeye currently has a consensus target price of $11.00, suggesting a potential upside of 45.89%. As a group, “Prepackaged software” companies have a potential upside of 17.55%. Given Audioeye’s stronger consensus rating and higher probable upside, equities analysts clearly believe Audioeye is more favorable than its peers.

Summary

Audioeye peers beat Audioeye on 7 of the 13 factors compared.

Audioeye Company Profile

AudioEye, Inc. provides Web accessibility solutions to Internet, print, broadcast, and other media to people regardless of their network connection, device, location, or disabilities in the United States. The company develops patented Internet content publication and distribution software that enables conversion of media into accessible formats, as well as allows for real time distribution on various Internet connected devices. It provides AudioEye Ally Platform, which consists of Digital Accessibility Platform and Ally Managed Service that are offered as an Internet cloud software as a service to Website owners, publishers, developers, and operators. The company's Digital Accessibility Platform, a self-service solution for clients who want to own the accessibility process from beginning to end and puts the power of accessibility issue tracking, auditing, and remediation in the hands of developers to enhance the usability and accessibility of their Web infrastructure. Its Ally Managed Service allows AudioEye accessibility engineers and AT usability testers to do heavy lifting; and AudioEye Ally Toolbar that provides easy-to-use and cloud-based assistive tools, which allow its clients to enhance the customer experience for those looking to customize the way in which they engage with the Web browser. The company also markets and sells managed services comprising product support, accessibility training from accessibility engineers and subject matter experts, manual assistive technology usability testing, video transcription and captioning, PDF accessibility solutions, audio description authoring, accessibility help desk, and others. It serves directly, as well as through strategic business and development referral partners to corporate enterprises; educational institutions; federal, state, and local governments and agencies; and not-for-profit organizations. The company was founded in 2005 and is headquartered in Tucson, Arizona.

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