Audioeye (NASDAQ:AEYE – Get Free Report) and Unity Software (NYSE:U – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Volatility & Risk
Audioeye has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Unity Software has a beta of 2.08, meaning that its share price is 108% more volatile than the S&P 500.
Insider & Institutional Ownership
51.1% of Audioeye shares are owned by institutional investors. Comparatively, 73.5% of Unity Software shares are owned by institutional investors. 25.9% of Audioeye shares are owned by insiders. Comparatively, 0.8% of Unity Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Audioeye and Unity Software”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Audioeye | $42.73 million | 3.67 | -$3.08 million | ($0.24) | -51.54 |
| Unity Software | $2.18 billion | 10.41 | -$402.77 million | ($0.81) | -63.65 |
Audioeye has higher earnings, but lower revenue than Unity Software. Unity Software is trading at a lower price-to-earnings ratio than Audioeye, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Audioeye and Unity Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Audioeye | -7.12% | 163.66% | 19.57% |
| Unity Software | -15.60% | 9.89% | 4.58% |
Analyst Ratings
This is a breakdown of current ratings and target prices for Audioeye and Unity Software, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Audioeye | 1 | 1 | 4 | 0 | 2.50 |
| Unity Software | 1 | 3 | 16 | 2 | 2.86 |
Audioeye currently has a consensus price target of $14.62, suggesting a potential upside of 18.23%. Unity Software has a consensus price target of $56.32, suggesting a potential upside of 9.25%. Given Audioeye’s higher possible upside, analysts clearly believe Audioeye is more favorable than Unity Software.
Summary
Audioeye beats Unity Software on 8 of the 15 factors compared between the two stocks.
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.
About Unity Software
Unity Software Inc. operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide. The company was founded in 2004 and is headquartered in San Francisco, California.
Receive News & Ratings for Audioeye Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Audioeye and related companies with MarketBeat.com's FREE daily email newsletter.
