Veritone (NASDAQ:VERI – Get Free Report) and DIAGNOS (OTCMKTS:DGNOF – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Veritone and DIAGNOS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veritone | -42.60% | -361.72% | -20.95% |
| DIAGNOS | -5,964.91% | N/A | -188.02% |
Earnings & Valuation
This table compares Veritone and DIAGNOS”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veritone | $92.64 million | 4.03 | -$37.38 million | ($0.67) | -6.07 |
| DIAGNOS | $80,000.00 | 350.10 | -$3.08 million | ($0.04) | -5.82 |
DIAGNOS has lower revenue, but higher earnings than Veritone. Veritone is trading at a lower price-to-earnings ratio than DIAGNOS, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
39.2% of Veritone shares are held by institutional investors. 14.0% of Veritone shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for Veritone and DIAGNOS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veritone | 1 | 1 | 4 | 1 | 2.71 |
| DIAGNOS | 0 | 0 | 0 | 0 | 0.00 |
Veritone currently has a consensus price target of $10.00, indicating a potential upside of 145.70%. Given Veritone’s stronger consensus rating and higher possible upside, equities analysts plainly believe Veritone is more favorable than DIAGNOS.
Risk and Volatility
Veritone has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, DIAGNOS has a beta of -0.03, meaning that its stock price is 103% less volatile than the S&P 500.
Summary
Veritone beats DIAGNOS on 10 of the 15 factors compared between the two stocks.
About Veritone
Veritone, Inc., together with its subsidiaries, engages in the provision of artificial intelligence (AI) computing solutions and services in the United States, the United Kingdom, France, Australia, Israel, and India. It develops and operates aiWARE platform, an AI operating system, that uses machine learning algorithms or AI models designed to mimic human cognitive functions, such as perception, prediction, and problem solving and optimization, as well as enables users to transform unstructured data into structured data, and analyze and optimize data to drive business processes and insights. The company also provides media advertising agency services, including media planning and strategy, media buying and placement, campaign messaging, clearance verification and attribution, and custom analytics directly to advertisers through outbound sales networking, and client and partner referrals, as well as indirectly through advertising agencies or marketing consultants. It serves media and entertainment, government, legal and compliance, energy, and other vertical markets. The company was formerly known as Veritone Delaware, Inc. and changed its name to Veritone, Inc. in July 2014. Veritone, Inc. was incorporated in 2014 and is headquartered in Denver, Colorado.
About DIAGNOS
DIAGNOS Inc. provides software-based services primarily in Canada, the United States, Colombia, Spain, Mexico, Saudi Arabia, and Costa Rica. The company offers healthcare services through Computer Assisted Retina Analysis, a web-based software tool that assists healthcare professionals for the detection of diabetic retinopathy; and allows eye care specialist to visualize both normal retinal landmarks and pathological changes. It also provides various consulting services in the fields of data analysis and artificial intelligence. DIAGNOS Inc. was founded in 1998 and is headquartered in Brossard, Canada.
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