Analyzing Braze (NASDAQ:BRZE) and Veritone (NASDAQ:VERI)

Braze (NASDAQ:BRZE) and Veritone (NASDAQ:VERI) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Insider & Institutional Ownership

90.5% of Braze shares are held by institutional investors. Comparatively, 39.2% of Veritone shares are held by institutional investors. 12.5% of Braze shares are held by insiders. Comparatively, 7.4% of Veritone shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Braze and Veritone”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braze	$738.18 million	4.47	-$131.29 million	($1.03)	-28.21
Veritone	$92.19 million	0.61	-$111.73 million	($0.38)	-1.46

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

Volatility & Risk

Braze has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Veritone has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Braze and Veritone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braze	1	1	19	0	2.86
Veritone	1	1	3	0	2.40

Braze currently has a consensus target price of $38.21, suggesting a potential upside of 31.49%. Veritone has a consensus target price of $6.12, suggesting a potential upside of 1,007.59%. Given Veritone’s higher possible upside, analysts plainly believe Veritone is more favorable than Braze.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Braze	-13.55%	-16.11%	-8.86%
Veritone	-111.90%	-159.15%	-39.63%

Summary

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

About Braze

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.

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.