Comparing Veritone (NASDAQ:VERI) and Digital Turbine (NASDAQ:APPS)

Digital Turbine (NASDAQ:APPSGet Free Report) and Veritone (NASDAQ:VERIGet Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Earnings and Valuation

This table compares Digital Turbine and Veritone”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital Turbine $565.25 million 2.61 -$37.73 million ($0.26) -46.88
Veritone $92.19 million 1.39 -$111.73 million ($0.38) -3.37

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

Profitability

This table compares Digital Turbine and Veritone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Turbine -4.46% 38.34% 8.27%
Veritone -111.90% -159.15% -39.63%

Institutional and Insider Ownership

63.7% of Digital Turbine shares are owned by institutional investors. Comparatively, 39.2% of Veritone shares are owned by institutional investors. 6.0% of Digital Turbine shares are owned by insiders. Comparatively, 7.4% of Veritone shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Digital Turbine and Veritone, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Turbine 1 1 4 0 2.50
Veritone 1 1 3 0 2.40

Digital Turbine currently has a consensus target price of $14.75, suggesting a potential upside of 21.00%. Veritone has a consensus target price of $6.12, suggesting a potential upside of 378.52%. Given Veritone’s higher possible upside, analysts clearly believe Veritone is more favorable than Digital Turbine.

Risk and Volatility

Digital Turbine has a beta of 2.87, meaning that its share price is 187% more volatile than the S&P 500. Comparatively, Veritone has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500.

Summary

Digital Turbine beats Veritone on 11 of the 14 factors compared between the two stocks.

About Digital Turbine

(Get Free Report)

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.

About Veritone

(Get Free Report)

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.

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