VIQ Solutions (OTCMKTS:VQSLF) & Xperi (NYSE:XPER) Financial Analysis

Xperi (NYSE:XPER) and VIQ Solutions (OTCMKTS:VQSLF) are both small-cap services companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Insider & Institutional Ownership

94.3% of Xperi shares are owned by institutional investors. 3.2% of Xperi shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Xperi has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, VIQ Solutions has a beta of -1.16, meaning that its share price is 216% less volatile than the S&P 500.

Profitability

This table compares Xperi and VIQ Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xperi	-12.57%	-0.73%	-0.49%
VIQ Solutions	-20.94%	-32.42%	-11.67%

Valuation and Earnings

This table compares Xperi and VIQ Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$448.11 million	0.58	-$56.34 million	($1.23)	-4.52
VIQ Solutions	$31.75 million	0.00	-$11.15 million	($0.50)	N/A

VIQ Solutions has lower revenue, but higher earnings than Xperi. Xperi is trading at a lower price-to-earnings ratio than VIQ Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Xperi and VIQ Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	2	0	2	0	2.00
VIQ Solutions	0	0	0	0	0.00

Xperi currently has a consensus price target of $11.00, suggesting a potential upside of 97.66%. Given Xperi’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Xperi is more favorable than VIQ Solutions.

Summary

Xperi beats VIQ Solutions on 11 of the 13 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.

About VIQ Solutions

VIQ Solutions Inc. operates as a technology and service platform provider for digital evidence capture, retrieval, and content management in Australia, the United States, the United Kingdom, Canada, and internationally. It operates in two segments, Technology and Related Revenue, and Technology Services. The Technology segment develops, distributes, and licenses computer-based digital solutions based on its technology. The Technology Services segment provides recording and transcription services. The company offers CapturePro that securely speeds the capture, creation, and management of large volumes of information, as well as preserves and secures the spoken word and video image, and delivers data; MobileMic Pro for capturing and managing incident reports, recorded statements, case notes, and other vital information; NetScribe, a speech-to-text engine to consolidate, accelerate, and optimize transcription workflows; and aiAssist, a multi-tenant workflow and analysis platform to manage, convert, and analyze large volumes of audio and visual content. It also provides legal, criminal justice, insurance, government, corporate finance, and media transcription services. The company was incorporated in 2004 and is based in Mississauga, Canada.