Financial Analysis: Fusemachines (FUSE) & Its Competitors

Fusemachines (NASDAQ:FUSE) is one of 276 public companies in the “IT Services” industry, but how does it weigh in compared to its competitors? We will compare Fusemachines to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

This table compares Fusemachines and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fusemachines	N/A	N/A	N/A
Fusemachines Competitors	-4,210.66%	-85.70%	-11.25%

Analyst Ratings

This is a breakdown of recent ratings for Fusemachines and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
Fusemachines Competitors	1883	5498	9187	325	2.47

As a group, “IT Services” companies have a potential upside of 4.76%. Given Fusemachines’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Fusemachines has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Fusemachines and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fusemachines	$7.71 million	-$930,000.00	-6.37
Fusemachines Competitors	$3.42 billion	$219.82 million	10.37

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

Institutional and Insider Ownership

46.8% of Fusemachines shares are owned by institutional investors. Comparatively, 36.5% of shares of all “IT Services” companies are owned by institutional investors. 31.8% of Fusemachines shares are owned by company insiders. Comparatively, 20.2% of shares of all “IT Services” companies are owned 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.

Risk and Volatility

Fusemachines has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Fusemachines’ competitors have a beta of 1.58, indicating that their average share price is 58% more volatile than the S&P 500.

Summary

Fusemachines competitors beat Fusemachines on 8 of the 13 factors compared.

About Fusemachines

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.