Analyzing RESAAS Services (OTCMKTS:RSASF) & Veritone (NASDAQ:VERI)

Veritone (NASDAQ:VERI) and RESAAS Services (OTCMKTS:RSASF) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Veritone and RESAAS Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veritone	0	2	0	0	2.00
RESAAS Services	0	0	0	0	N/A

Veritone presently has a consensus price target of $2.25, indicating a potential downside of 23.73%. Given Veritone’s higher possible upside, equities research analysts clearly believe Veritone is more favorable than RESAAS Services.

Risk and Volatility

Veritone has a beta of 3.33, suggesting that its stock price is 233% more volatile than the S&P 500. Comparatively, RESAAS Services has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Profitability

This table compares Veritone and RESAAS Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veritone	-42.56%	-222.47%	-10.37%
RESAAS Services	-360.29%	N/A	-279.64%

Valuation & Earnings

This table compares Veritone and RESAAS Services’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veritone	$131.96 million	0.84	-$58.62 million	($2.20)	-1.34
RESAAS Services	$300,000.00	63.99	-$1.67 million	($0.02)	-12.00

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

Insider and Institutional Ownership

39.2% of Veritone shares are owned by institutional investors. 26.6% of Veritone shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Veritone beats RESAAS Services on 8 of the 12 factors compared between the two stocks.

About Veritone

Veritone, Inc., together with its subsidiaries, engages in the provision of artificial intelligence (AI) computing solutions and services in the United States, the United Kingdom, France, Australia, Israel, and India. It develops and operates aiWARE platform, an AI operating system, that uses machine learning algorithms or AI models designed to mimic human cognitive functions, such as perception, prediction, and problem solving and optimization, as well as enables users to transform unstructured data into structured data, and analyze and optimize data to drive business processes and insights. The company also provides media advertising agency services, including media planning and strategy, media buying and placement, campaign messaging, clearance verification and attribution, and custom analytics directly to advertisers through outbound sales networking, and client and partner referrals, as well as indirectly through advertising agencies or marketing consultants. It serves media and entertainment, government, legal and compliance, energy, and other vertical markets. The company was formerly known as Veritone Delaware, Inc. and changed its name to Veritone, Inc. in July 2014. Veritone, Inc. was incorporated in 2014 and is headquartered in Denver, Colorado.

About RESAAS Services

RESAAS Services Inc. engages in the development of web and mobile communications software for the real estate industry. The company offers a suite of tools, which integrate with the platform, including a global referral network, lead generation engine, listing management, client engagement modules, customer relationship management tools, analytics, file sharing, payment system, and advertising engine. Its solutions include RealTimeMLS, a real-time listing solution and communication platform designed for real estate associations and multiple listing services (MLSs); and BrokerOS, an online communication hub that ensures agents open, read, and respond to the emails and messages sent to them by users. The company serves MLSs, franchises, and real estate brokerage and real estate agents in the real estate industry. RESAAS Services Inc. was incorporated in 2009 and is based in Vancouver, Canada.