Reviewing Destiny Media Technologies (OTCMKTS:DSNY) & AEye (NASDAQ:LIDR)

Destiny Media Technologies (OTCMKTS:DSNY) and AEye (NASDAQ:LIDR) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

21.6% of AEye shares are held by institutional investors. 16.1% of Destiny Media Technologies shares are held by company insiders. Comparatively, 11.9% of AEye shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Destiny Media Technologies and AEye’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Destiny Media Technologies	-20.68%	-28.56%	-23.33%
AEye	-12,698.89%	-49.42%	-42.66%

Earnings and Valuation

This table compares Destiny Media Technologies and AEye”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destiny Media Technologies	$4.52 million	1.33	-$640,000.00	($0.10)	-6.23
AEye	$230,000.00	261.75	-$33.96 million	($1.13)	-1.15

Destiny Media Technologies has higher revenue and earnings than AEye. Destiny Media Technologies is trading at a lower price-to-earnings ratio than AEye, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Destiny Media Technologies and AEye, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destiny Media Technologies	0	0	0	0	0.00
AEye	1	0	2	0	2.33

AEye has a consensus target price of $4.75, suggesting a potential upside of 265.38%. Given AEye’s stronger consensus rating and higher probable upside, analysts clearly believe AEye is more favorable than Destiny Media Technologies.

Risk & Volatility

Destiny Media Technologies has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, AEye has a beta of 2.75, indicating that its stock price is 175% more volatile than the S&P 500.

About Destiny Media Technologies

Destiny Media Technologies Inc. develops technologies that enable the distribution of digital media files in a streaming or digital download format over the Internet. It offers Play MPE, an online platform that distributes promotional content, including broadcast quality audio, video, images, promotional information, and other digital content from record labels and artists to broadcasting professionals, music curators, and music reviewers to discover, download, broadcast, and review the content; Play MPE CASTER; Play MPE Quickshare provides a distribution tool for Play MPE customers to promote music; and Play MPE Player for music curators to review and download content through cloud-based player and mobile apps. The company also provides Music Tracking Radar, a digital tracking service that tracks and reports the number and times customers track is played; Clipstream, an online video platform for encoding, hosting, and reporting on video playback that can be embedded in third party websites or emails; and playback through its JavaScript codec engine. It markets and sells its products in the United States, Canada, Europe, Asia, South America, Africa, and Australia. The company was founded in 1991 and is based in Vancouver, Canada.

About AEye

AEye, Inc., together with its subsidiaries, provides lidar systems for vehicle autonomy, advanced driver-assistance systems, and robotic vision applications in the United States, Europe, and Asia-Pacific. It offers 4Sight intelligent sensing lidar platform, including 4Sight at Design, Triggered 4Sight, Responsive 4Sight, and Predictive 4Sight; and 4Sight for automotive and industrial market. The company was formerly known as CF Finance Acquisition Corp. III and changed its name to AEye, Inc. in August 2021. AEye, Inc. was founded in 2013 and is headquartered in Dublin, California.