Head-To-Head Analysis: Mitek Systems (NASDAQ:MITK) and Veritone (NASDAQ:VERI)

Veritone (NASDAQ:VERI) and Mitek Systems (NASDAQ:MITK) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Earnings & Valuation

This table compares Veritone and Mitek Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veritone	$92.19 million	0.63	-$111.73 million	($0.38)	-1.50
Mitek Systems	$179.69 million	4.48	$8.80 million	$0.47	38.00

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Veritone and Mitek Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veritone	1	1	3	0	2.40
Mitek Systems	0	2	1	0	2.33

Veritone presently has a consensus target price of $6.12, suggesting a potential upside of 974.94%. Mitek Systems has a consensus target price of $19.33, suggesting a potential upside of 8.25%. Given Veritone’s stronger consensus rating and higher probable upside, research analysts clearly believe Veritone is more favorable than Mitek Systems.

Insider and Institutional Ownership

39.2% of Veritone shares are owned by institutional investors. Comparatively, 83.6% of Mitek Systems shares are owned by institutional investors. 7.4% of Veritone shares are owned by company insiders. Comparatively, 2.2% of Mitek Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Veritone has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500. Comparatively, Mitek Systems has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares Veritone and Mitek Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veritone	-111.90%	-159.15%	-39.63%
Mitek Systems	11.39%	19.16%	11.32%

Summary

Mitek Systems beats Veritone on 9 of the 14 factors compared between the two stocks.

About Veritone

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.

About Mitek Systems

Mitek Systems, Inc. provides mobile image capture and digital identity verification solutions worldwide. Its product portfolio includes Mobile Deposit that enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile websites, and desktop applications; and Mobile Fill, which includes automatic image capture, minimizes the numbers of clicks, and expedites form fill completion. The company also offers MiSnap, a mobile-capture software development kit that enables an intuitive user experience and instant capture of quality images of identity documents and checks. CheckReader enables financial institutions to automatically extract data from checks once they have been scanned or photographed by the application; Check Fraud Defender, an AI-powered and cloud-hosted model for fighting check fraud; and Check Intelligence that enables financial institutions to automatically extract data from a check image received across any deposit channel, including branch, ATM, remote deposit capture, and mobile. In addition, it provides MiVIP, an end-to-end KYC platform that allows companies to design, build, and deploy robust KYC journeys with little or no development resources; and MiPass provides protection against most sophisticated forms of identity theft and dangerous fraud techniques, such as deepfakes and synthetic identities. Further, the company provides ID_CLOUD, an automated identity verification solution that is integrated into a customers’ application to read and validate identity documents; IDLive Face, a passive facial liveness detection product; IDVoice, a robust AI-driven voice biometric engine; IDLive Voice to stop spoofing attacks on voice biometric systems; and IDLive Doc that works to fight fraud related to digitally displayed document images. The company was incorporated in 1986 and is based in San Diego, California.