Financial Survey: Audioeye (AEYE) & The Competition

Audioeye (NASDAQ:AEYE) is one of 953 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare Audioeye to similar businesses based on the strength of its profitability, dividends, institutional ownership, analyst recommendations, earnings, risk and valuation.

Institutional & Insider Ownership

51.1% of Audioeye shares are owned by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are owned by institutional investors. 25.9% of Audioeye shares are owned by company insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Audioeye and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Audioeye	$40.31 million	-$3.08 million	-54.65
Audioeye Competitors	$1.80 billion	$385.91 million	109.96

Audioeye’s competitors have higher revenue and earnings than Audioeye. Audioeye 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Audioeye	-7.12%	163.66%	19.57%
Audioeye Competitors	-612.70%	20.86%	-8.99%

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, Audioeye’s competitors have a beta of 1.15, indicating that their average stock price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Audioeye and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	1	4	0	2.50
Audioeye Competitors	5729	21453	44741	1492	2.57

Audioeye currently has a consensus price target of $14.62, indicating a potential upside of 11.51%. As a group, “Software” companies have a potential upside of 26.29%. Given Audioeye’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Audioeye has less favorable growth aspects than its competitors.

Summary

Audioeye competitors beat Audioeye on 7 of the 13 factors compared.

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.