Audioeye (NASDAQ:AEYE – Get Free Report) and Digital Turbine (NASDAQ:APPS – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
51.1% of Audioeye shares are held by institutional investors. Comparatively, 63.7% of Digital Turbine shares are held by institutional investors. 28.8% of Audioeye shares are held by company insiders. Comparatively, 6.1% of Digital Turbine shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Audioeye has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Digital Turbine has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Audioeye | 1 | 0 | 4 | 0 | 2.60 |
| Digital Turbine | 1 | 2 | 1 | 0 | 2.00 |
Audioeye presently has a consensus price target of $22.00, indicating a potential upside of 131.82%. Digital Turbine has a consensus price target of $7.75, indicating a potential upside of 47.06%. Given Audioeye’s stronger consensus rating and higher probable upside, equities analysts plainly believe Audioeye is more favorable than Digital Turbine.
Profitability
This table compares Audioeye and Digital Turbine’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Audioeye | -8.88% | 40.94% | 9.77% |
| Digital Turbine | -14.59% | 12.12% | 2.27% |
Valuation & Earnings
This table compares Audioeye and Digital Turbine”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Audioeye | $35.20 million | 3.35 | -$4.25 million | ($0.28) | -33.89 |
| Digital Turbine | $490.51 million | 1.20 | -$92.10 million | ($0.73) | -7.22 |
Audioeye has higher earnings, but lower revenue than Digital Turbine. Audioeye is trading at a lower price-to-earnings ratio than Digital Turbine, indicating that it is currently the more affordable of the two stocks.
Summary
Audioeye beats Digital Turbine on 10 of the 14 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 Digital Turbine
Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.
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