Veritone (NASDAQ: VERI) and Qualys (NASDAQ:QLYS) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Veritone N/A N/A N/A
Qualys 18.92% 14.69% 9.39%

Valuation and Earnings

This table compares Veritone and Qualys’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Veritone $9.94 million 13.56 -$25.92 million N/A N/A
Qualys $211.63 million 8.02 $53.13 million $1.02 44.66

Qualys has higher revenue and earnings than Veritone.

Insider and Institutional Ownership

0.4% of Veritone shares are held by institutional investors. Comparatively, 75.3% of Qualys shares are held by institutional investors. 30.2% of Qualys shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Veritone and Qualys, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veritone 0 0 4 0 3.00
Qualys 0 8 7 0 2.47

Veritone presently has a consensus target price of $18.33, suggesting a potential upside of 103.03%. Qualys has a consensus target price of $44.73, suggesting a potential downside of 1.81%. Given Veritone’s stronger consensus rating and higher probable upside, equities analysts plainly believe Veritone is more favorable than Qualys.

Summary

Qualys beats Veritone on 8 of the 11 factors compared between the two stocks.

Veritone Company Profile

Veritone, Inc. is a developer of artificial intelligence (AI) platform. The Company’s platform unlocks the power of cognitive computing to transform unstructured audio and video data and analyze it in conjunction with structured data in a seamless, automated manner to generate actionable intelligence. Its cloud-based artificial intelligence operating system (aiOS) integrates and orchestrates an open ecosystem of cognitive engines, together with the Company’s suite of applications, to reveal valuable multivariate insights from vast amounts of audio, video and structured data. The Company’s technology enables users to run comprehensive, multivariate queries, correlations and analyses in near real-time using multiple cognitive engines and data sets, integrating and refining the outputs. The Company’s services and target markets include Media Agency Services, software as a service (Saas) Solutions, and Other Vertical Markets and Applications.

Qualys Company Profile

Qualys, Inc. is a provider of cloud-based security and compliance solutions. The Company’s solutions enable organizations to identify security risks to their information technology (IT) infrastructures, help protect their IT systems and applications from cyber-attacks. Its suite of security and compliance solutions delivered on its Qualys Cloud Platform enables its customers to identify their IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions and verify the implementation of such actions. Its Qualys Cloud Platform consists of a suite of IT security and compliance solutions. The Qualys Cloud Suite includes solutions, such as Vulnerability Management, Continuous Monitoring, Cloud Agent, AssetView, ThreatPROTECT, Policy Compliance, Payment Card Industry Compliance, Security Assessment Questionnaire, Web Application Scanning and Web Application Firewall. It provides its solutions through a software-as-a-service model.

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