Greenlane (NASDAQ:GNLN – Get Free Report) and Veritone (NASDAQ:VERI – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Volatility and Risk
Greenlane has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Veritone has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500.
Earnings & Valuation
This table compares Greenlane and Veritone”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Greenlane | $4.36 million | 0.49 | -$85.58 million | ($58.92) | -0.05 |
| Veritone | $92.19 million | 1.43 | -$111.73 million | ($0.38) | -3.45 |
Greenlane has higher earnings, but lower revenue than Veritone. Veritone is trading at a lower price-to-earnings ratio than Greenlane, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Greenlane and Veritone, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Greenlane | 1 | 0 | 0 | 0 | 1.00 |
| Veritone | 1 | 1 | 3 | 0 | 2.40 |
Veritone has a consensus target price of $6.12, indicating a potential upside of 367.56%. Given Veritone’s stronger consensus rating and higher probable upside, analysts clearly believe Veritone is more favorable than Greenlane.
Institutional and Insider Ownership
14.0% of Greenlane shares are held by institutional investors. Comparatively, 39.2% of Veritone shares are held by institutional investors. 13.0% of Greenlane shares are held by company insiders. Comparatively, 7.4% of Veritone shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Greenlane and Veritone’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Greenlane | -4,630.56% | -282.11% | -240.74% |
| Veritone | -111.90% | -159.15% | -39.63% |
Summary
Veritone beats Greenlane on 11 of the 14 factors compared between the two stocks.
About Greenlane
Greenlane Holdings, Inc. develops and distributes cannabis accessories, vape solutions, and lifestyle products in the United States, Canada, and Europe. It operates in two segments, Consumer Goods and Industrial Goods. The company provides consumption accessories, vaporizers, pipes, rolling papers, grinders, and apparel lines, as well as bubblers, rigs, other smoking and vaporization related accessories, and merchandise. It offers its products under the Groove, Eyce, DaVinci, Higher Standards, Pollen Gear, Marley Natural, and Keith Haring brands. The company also operates e-commerce websites, such as Vapor.com, Vaposhop.com, DaVinciVaporizer.com, PuffItUp.com, HigherStandards.com, EyceMolds.com, and MarleyNaturalShop.com. It serves customers through smoke shops, cannabis dispensaries, and specialty retailers. The company was founded in 2005 and is headquartered in Boca Raton, Florida.
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.
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