Analyzing Audioeye (NASDAQ:AEYE) & Unity Software (NYSE:U)

Audioeye (NASDAQ:AEYE) and Unity Software (NYSE:U) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Insider & Institutional Ownership

51.1% of Audioeye shares are held by institutional investors. Comparatively, 73.5% of Unity Software shares are held by institutional investors. 25.9% of Audioeye shares are held by insiders. Comparatively, 0.8% of Unity Software shares are held by 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Audioeye and Unity Software, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	1	4	0	2.50
Unity Software	1	4	17	1	2.78

Audioeye presently has a consensus price target of $14.62, suggesting a potential upside of 7.62%. Unity Software has a consensus price target of $48.86, suggesting a potential upside of 20.57%. Given Unity Software’s stronger consensus rating and higher possible upside, analysts plainly believe Unity Software is more favorable than Audioeye.

Valuation & Earnings

This table compares Audioeye and Unity Software”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Audioeye	$40.31 million	4.28	-$3.08 million	($0.24)	-56.62
Unity Software	$1.85 billion	9.64	-$402.77 million	($1.36)	-29.79

Audioeye has higher earnings, but lower revenue than Unity Software. Audioeye is trading at a lower price-to-earnings ratio than Unity Software, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Audioeye has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Unity Software has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500.

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	-28.97%	4.64%	2.16%

Summary

Unity Software beats Audioeye on 9 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.