Fusemachines (FUSE) and Its Rivals Critical Review

Fusemachines (NASDAQ:FUSE) is one of 275 public companies in the “IT Services” industry, but how does it compare to its peers? We will compare Fusemachines to related companies based on the strength of its analyst recommendations, dividends, valuation, risk, profitability, earnings and institutional ownership.

Insider and Institutional Ownership

46.8% of Fusemachines shares are held by institutional investors. Comparatively, 36.7% of shares of all “IT Services” companies are held by institutional investors. 31.8% of Fusemachines shares are held by insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Fusemachines and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
Fusemachines Competitors	1919	5548	9269	328	2.47

As a group, “IT Services” companies have a potential upside of 3.35%. Given Fusemachines’ peers stronger consensus rating and higher probable upside, analysts plainly believe Fusemachines has less favorable growth aspects than its peers.

Profitability

This table compares Fusemachines and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fusemachines	N/A	N/A	N/A
Fusemachines Competitors	-187.13%	-35.39%	-8.65%

Earnings & Valuation

This table compares Fusemachines and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fusemachines	$7.71 million	-$930,000.00	-4.77
Fusemachines Competitors	$8.64 billion	$221.12 million	-48.19

Fusemachines’ peers have higher revenue and earnings than Fusemachines. Fusemachines is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Fusemachines has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Fusemachines’ peers have a beta of 2.15, suggesting that their average share price is 115% more volatile than the S&P 500.

Summary

Fusemachines peers beat Fusemachines on 7 of the 13 factors compared.

Fusemachines Company Profile

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.