Audioeye (NASDAQ:AEYE – Get Free Report) and SCWorx (NASDAQ:WORX – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Institutional & Insider Ownership
51.1% of Audioeye shares are held by institutional investors. Comparatively, 1.9% of SCWorx shares are held by institutional investors. 25.9% of Audioeye shares are held by company insiders. Comparatively, 0.4% of SCWorx shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Audioeye and SCWorx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Audioeye | -10.92% | 121.59% | 15.45% |
| SCWorx | -80.55% | -34.75% | -30.85% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Audioeye | 1 | 1 | 4 | 0 | 2.50 |
| SCWorx | 1 | 0 | 0 | 0 | 1.00 |
Audioeye presently has a consensus price target of $14.62, suggesting a potential upside of 111.04%. Given Audioeye’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Audioeye is more favorable than SCWorx.
Earnings and Valuation
This table compares Audioeye and SCWorx”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Audioeye | $40.31 million | 2.16 | -$3.08 million | ($0.36) | -19.25 |
| SCWorx | $2.88 million | 0.13 | -$4.44 million | ($28.92) | -0.13 |
Audioeye has higher revenue and earnings than SCWorx. Audioeye is trading at a lower price-to-earnings ratio than SCWorx, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Audioeye has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, SCWorx has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
Summary
Audioeye beats SCWorx on 12 of the 14 factors compared between the two stocks.
About Audioeye
AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.
About SCWorx
SCWorx Corp. develops and markets health care information technology solutions and related services to improve healthcare processes and information flow within hospitals and other healthcare facilities in the United States. The company provides data content and services related to repair, normalization, and interoperability of information for healthcare providers, as well as big data analytics for the healthcare industry. It also offers virtualized item master file repair, expansion, and automation; electronic medical record management; charge description master management; contract management; request for proposal automation; rebate management; integration of acquired management; big data analytics modeling; data integration and warehousing; and ScanWorx. In addition, the company focuses on selling personal protective equipment and COVID-19 rapid test kits. It sells its solutions and services to hospitals and health systems through its direct sales force, and distribution and reseller partnerships. SCWorx Corp. is based in New York, New York.
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