Head-To-Head Contrast: Audioeye (NASDAQ:AEYE) and Trend Micro (OTCMKTS:TMICY)

Trend Micro (OTCMKTS:TMICY) and Audioeye (NASDAQ:AEYE) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Trend Micro and Audioeye”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trend Micro	$1.85 billion	3.12	$231.30 million	$1.76	25.01
Audioeye	$40.31 million	3.80	-$3.08 million	($0.24)	-50.25

Trend Micro has higher revenue and earnings than Audioeye. Audioeye is trading at a lower price-to-earnings ratio than Trend Micro, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Trend Micro and Audioeye’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trend Micro	12.30%	28.58%	8.73%
Audioeye	-7.12%	163.66%	19.57%

Volatility and Risk

Trend Micro has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Audioeye has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Trend Micro and Audioeye, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trend Micro	0	1	0	1	3.00
Audioeye	1	1	4	0	2.50

Audioeye has a consensus target price of $14.62, suggesting a potential upside of 21.27%. Given Audioeye’s higher possible upside, analysts plainly believe Audioeye is more favorable than Trend Micro.

Institutional and Insider Ownership

0.1% of Trend Micro shares are held by institutional investors. Comparatively, 51.1% of Audioeye shares are held by institutional investors. 25.9% of Audioeye shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Trend Micro beats Audioeye on 8 of the 15 factors compared between the two stocks.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.

About Audioeye

AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.