Reviewing Fathom (NASDAQ:FTHM) & Helport AI (NASDAQ:HPAI)

Helport AI (NASDAQ:HPAI) and Fathom (NASDAQ:FTHM) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Valuation & Earnings

This table compares Helport AI and Fathom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Helport AI	$34.86 million	0.66	$1.86 million	N/A	N/A
Fathom	$420.48 million	0.08	-$20.31 million	($0.73)	-1.42

Helport AI has higher earnings, but lower revenue than Fathom.

Institutional & Insider Ownership

62.4% of Helport AI shares are owned by institutional investors. Comparatively, 55.5% of Fathom shares are owned by institutional investors. 13.3% of Helport AI shares are owned by insiders. Comparatively, 16.4% of Fathom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Helport AI and Fathom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Helport AI	N/A	N/A	N/A
Fathom	-4.83%	-49.25%	-25.17%

Analyst Recommendations

This is a breakdown of recent ratings for Helport AI and Fathom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Helport AI	1	0	0	0	1.00
Fathom	1	0	0	1	2.50

Fathom has a consensus price target of $2.50, suggesting a potential upside of 140.38%. Given Fathom’s stronger consensus rating and higher probable upside, analysts clearly believe Fathom is more favorable than Helport AI.

Volatility and Risk

Helport AI has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Fathom has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.

About Helport AI

Helport AI Ltd. engages in the development of intelligent products, solutions, and a digital platform for customer contact centers. The firm offers AI Assist, a software that provides tailored AI-powered guidance and oversight for contact center interactions and customer experience, with functions including agent assistant, quality assurance (QA) assistant, supervisor assistant, and knowledge base assistant. It also operates Helphub Crowdsourcing Platform, an AI integrated contact center business process outsourcing (BPO) platform that serves both companies providing and seeking BPO services. The company was founded in September 2020 and is headquartered in Singapore.

About Fathom

Fathom Holdings Inc. provides a real estate services platform that integrates residential brokerage, mortgage, title, and insurance services in the United States. It operates through three segments: Real Estate Brokerage, Mortgage, and Technology. The Real Estate Brokerage segment provides real estate brokerage services. The Mortgage segment offers residential loan origination and underwriting services. The Technology segment provides Software as a Service solutions and data mining for third party customers. It offers access to various properties for sale or lease through its FathomRealty.com website to buyers, sellers, landlords, and tenants; insurance agency services; and title services. In addition, the company provides intelliAgent, a real estate technology platform that offers a suite of brokerage and agent level tools, technology, business processes, business intelligence and reporting, and training; transaction, personnel, customer relationship, and accounting management for agent transactions; and reporting, social media marketing, and other marketing and marketing repository services, as well as marketplace for add-on services and third-party technology. Its brands include Fathom Realty, Dagley Insurance, Encompass Lending, intelliAgent, LiveBy, Real Results, Verus Title, and Cornerstone. The company was founded in 2010 and is headquartered in Cary, North Carolina.