Veritone (NASDAQ:VERI – Get Free Report) and Digital Turbine (NASDAQ:APPS – Get Free Report) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Risk & Volatility
Veritone has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Digital Turbine has a beta of 2.87, meaning that its share price is 187% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Veritone and Digital Turbine, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veritone | 1 | 1 | 3 | 0 | 2.40 |
| Digital Turbine | 1 | 1 | 4 | 0 | 2.50 |
Insider & Institutional Ownership
39.2% of Veritone shares are held by institutional investors. Comparatively, 63.7% of Digital Turbine shares are held by institutional investors. 7.4% of Veritone shares are held by company insiders. Comparatively, 6.0% of Digital Turbine shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Veritone and Digital Turbine’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veritone | -111.90% | -159.15% | -39.63% |
| Digital Turbine | -4.46% | 38.34% | 8.27% |
Earnings & Valuation
This table compares Veritone and Digital Turbine”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veritone | $92.19 million | 1.18 | -$111.73 million | ($0.38) | -2.84 |
| Digital Turbine | $565.25 million | 2.35 | -$37.73 million | ($0.26) | -42.15 |
Digital Turbine has higher revenue and earnings than Veritone. Digital Turbine is trading at a lower price-to-earnings ratio than Veritone, indicating that it is currently the more affordable of the two stocks.
Summary
Digital Turbine beats Veritone on 11 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 Digital Turbine
Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.
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