Analyzing Core AI (NASDAQ:CHAI) and Sohu.com (NASDAQ:SOHU)

Sohu.com (NASDAQ:SOHU) and Core AI (NASDAQ:CHAI) are both small-cap communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Ratings

This is a breakdown of recent recommendations for Sohu.com and Core AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sohu.com	0	1	2	0	2.67
Core AI	1	0	0	0	1.00

Sohu.com presently has a consensus price target of $19.00, indicating a potential upside of 51.82%. Given Sohu.com’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sohu.com is more favorable than Core AI.

Volatility & Risk

Sohu.com has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Core AI has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.

Insider & Institutional Ownership

33.0% of Sohu.com shares are owned by institutional investors. Comparatively, 9.9% of Core AI shares are owned by institutional investors. 21.1% of Sohu.com shares are owned by insiders. Comparatively, 6.8% of Core AI shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Sohu.com and Core AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sohu.com	38.15%	21.63%	16.13%
Core AI	-68.53%	-226.72%	-69.36%

Earnings & Valuation

This table compares Sohu.com and Core AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sohu.com	$584.33 million	0.56	$394.10 million	$8.57	1.46
Core AI	$55.24 million	0.09	-$31.59 million	($1.96)	-0.13

Sohu.com has higher revenue and earnings than Core AI. Core AI is trading at a lower price-to-earnings ratio than Sohu.com, indicating that it is currently the more affordable of the two stocks.

Summary

Sohu.com beats Core AI on 13 of the 14 factors compared between the two stocks.

About Sohu.com

Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.

About Core AI

Siyata Mobile Inc. develops and provides cellular communications solutions for enterprise customers. It provides connected-vehicle devices and various accessories that are designed for professional fleets, such as trucks, vans, buses, ambulances, government cars, and others. The company also develops, markets, and sells rugged Push-To-Talk (PTT), mobile devices, cellular amplifiers, and various accessories. In addition, it offers 4G LTE devices, such as Uniden UV350 and Uniden CP250, in-vehicle communication devices that incorporate voice, push-to-talk over cellular, navigation, and data fleet management solutions. Further, the company provides cellular booster solutions, such as Uniden U60C 4G and U65C 4G to enhance connectivity; Uniden U70 FN for inside buildings, Uniden UM50 FN for inside vehicles, and the Uniden UM2M FN that can connect to its Uniden UV350 in vehicle communicator; Uniden Mobile Coverage Kit; Mission Critical Push-To-Talk device; and Vehicle Kit 7, a vehicle kit accessory that provides an in-vehicle solution. It serves cellular network operators and their dealers, as well as commercial vehicle technology distributors for fleets in Israel, Europe, Africa, the Middle East, Australia, New Zealand, Canada, and the United States. The company was incorporated in 1986 and is headquartered in Montreal, Canada.