Critical Review: Carbon Sciences (OTCMKTS:DLOC) versus Audioeye (NASDAQ:AEYE)

Audioeye (NASDAQ:AEYE) and Carbon Sciences (OTCMKTS:DLOC) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

51.1% of Audioeye shares are held by institutional investors. 25.9% of Audioeye shares are held by company insiders. Comparatively, 0.7% of Carbon Sciences shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Audioeye has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Carbon Sciences has a beta of 2.38, indicating that its stock price is 138% more volatile than the S&P 500.

Earnings and Valuation

This table compares Audioeye and Carbon Sciences”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Audioeye	$40.31 million	2.07	-$3.08 million	($0.29)	-23.07
Carbon Sciences	$30,000.00	N/A	-$4.72 million	($0.01)	N/A

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

Analyst Ratings

This is a summary of recent ratings and price targets for Audioeye and Carbon Sciences, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	1	4	0	2.50
Carbon Sciences	0	0	0	0	0.00

Audioeye presently has a consensus target price of $14.63, suggesting a potential upside of 118.61%. Given Audioeye’s stronger consensus rating and higher probable upside, research analysts clearly believe Audioeye is more favorable than Carbon Sciences.

Profitability

This table compares Audioeye and Carbon Sciences’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Audioeye	-9.05%	71.24%	11.35%
Carbon Sciences	N/A	N/A	N/A

Summary

Audioeye beats Carbon Sciences on 9 of the 12 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 Carbon Sciences

Digital Locations, Inc. operates as an aggregator, developer, and acquirer of small cell sites and cell towers for 5G services. The company intends to develop a portfolio of sites to meet the expected demand of growing 5G networks. It also provides web-based software, which provides a system and method for identifying wireless communication assets. The company was formerly known as Carbon Sciences, Inc. and changed its name to Digital Locations, Inc. in September 2017. Digital Locations, Inc. was incorporated in 2006 and is based in Santa Barbara, California.