Audioeye (AEYE) and Its Rivals Critical Review

Audioeye (NASDAQ:AEYE) is one of 953 public companies in the “Software” industry, but how does it compare to its rivals? We will compare Audioeye to related companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, profitability, dividends and risk.

Volatility & Risk

Audioeye has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Audioeye’s rivals have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Valuation & Earnings

This table compares Audioeye and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Audioeye	$40.31 million	-$3.08 million	-54.65
Audioeye Competitors	$1.80 billion	$385.91 million	109.96

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

Insider & Institutional Ownership

51.1% of Audioeye shares are held by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are held by institutional investors. 25.9% of Audioeye shares are held by insiders. Comparatively, 19.8% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Audioeye	-7.12%	163.66%	19.57%
Audioeye Competitors	-612.70%	20.86%	-8.99%

Analyst Ratings

This is a summary of current ratings and recommmendations for Audioeye and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	1	4	0	2.50
Audioeye Competitors	5729	21453	44741	1492	2.57

Audioeye currently has a consensus price target of $14.62, suggesting a potential upside of 11.51%. As a group, “Software” companies have a potential upside of 26.29%. Given Audioeye’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Audioeye has less favorable growth aspects than its rivals.

Summary

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

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.