Critical Review: Array Digital Infrastructure (NYSE:AD) and Core AI (NASDAQ:CHAI)

Core AI (NASDAQ:CHAI) and Array Digital Infrastructure (NYSE:AD) are both transportation, communications, electric, gas, and sanitary services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

Core AI has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, Array Digital Infrastructure has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Profitability

This table compares Core AI and Array Digital Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core AI	-144.50%	-186.67%	-99.71%
Array Digital Infrastructure	-0.68%	1.67%	0.74%

Valuation & Earnings

This table compares Core AI and Array Digital Infrastructure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core AI	$11.63 million	3.91	-$25.27 million	($102.08)	-0.02
Array Digital Infrastructure	$3.80 billion	1.03	-$39.00 million	$0.18	255.07

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

Insider & Institutional Ownership

9.9% of Core AI shares are held by institutional investors. Comparatively, 18.0% of Array Digital Infrastructure shares are held by institutional investors. 6.8% of Core AI shares are held by insiders. Comparatively, 1.0% of Array Digital Infrastructure shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Core AI and Array Digital Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core AI	0	0	0	0	0.00
Array Digital Infrastructure	1	1	2	0	2.25

Array Digital Infrastructure has a consensus target price of $62.00, indicating a potential upside of 35.04%. Given Array Digital Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe Array Digital Infrastructure is more favorable than Core AI.

Summary

Array Digital Infrastructure beats Core AI on 9 of the 13 factors compared between the two stocks.

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.

About Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.