Critical Analysis: SoftwareOne (OTCMKTS:SWONF) vs. Audioeye (NASDAQ:AEYE)

Audioeye (NASDAQ:AEYE) and SoftwareOne (OTCMKTS:SWONF) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Valuation and Earnings

This table compares Audioeye and SoftwareOne”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Audioeye	$35.20 million	3.28	-$4.25 million	($0.28)	-33.19
SoftwareOne	$1.15 billion	N/A	-$1.72 million	N/A	N/A

SoftwareOne has higher revenue and earnings than Audioeye.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Audioeye and SoftwareOne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	0	4	0	2.60
SoftwareOne	1	1	0	0	1.50

Audioeye currently has a consensus price target of $22.00, suggesting a potential upside of 136.71%. Given Audioeye’s stronger consensus rating and higher probable upside, analysts plainly believe Audioeye is more favorable than SoftwareOne.

Volatility & Risk

Audioeye has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, SoftwareOne has a beta of 2.37, meaning that its share price is 137% more volatile than the S&P 500.

Institutional & Insider Ownership

51.1% of Audioeye shares are held by institutional investors. 40.7% of Audioeye shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Audioeye	-8.88%	40.94%	9.77%
SoftwareOne	N/A	N/A	N/A

Summary

Audioeye beats SoftwareOne on 7 of the 11 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 SoftwareOne

SoftwareONE Holding AG provides software and cloud solutions in Switzerland, Europe, the Middle East, Africa, the United States, Canada, Latin America, and the Asia Pacific. The company develops and delivers the technology solutions that modernise applications and software in the cloud. It serves large enterprises, corporates, small and medium-sized enterprises, and public sector organizations. SoftwareONE Holding AG was founded in 2000 and is headquartered in Stans, Switzerland.