Analyzing Fusemachines (FUSE) and Its Competitors

Fusemachines (NASDAQ:FUSE) is one of 275 publicly-traded companies in the “IT Services” industry, but how does it compare to its competitors? We will compare Fusemachines to similar companies based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Volatility and Risk

Fusemachines has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Fusemachines’ competitors have a beta of 1.59, suggesting that their average share price is 59% more volatile than the S&P 500.

Valuation & Earnings

This table compares Fusemachines and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fusemachines	$7.71 million	-$930,000.00	-5.36
Fusemachines Competitors	$3.44 billion	$221.12 million	-43.77

Fusemachines’ competitors have higher revenue and earnings than Fusemachines. Fusemachines is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

46.8% of Fusemachines shares are owned by institutional investors. Comparatively, 36.8% of shares of all “IT Services” companies are owned by institutional investors. 31.8% of Fusemachines shares are owned by company insiders. Comparatively, 20.2% of shares of all “IT Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Fusemachines and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fusemachines	N/A	N/A	N/A
Fusemachines Competitors	-187.16%	-35.42%	-8.66%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Fusemachines and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
Fusemachines Competitors	1906	5539	9236	327	2.47

As a group, “IT Services” companies have a potential upside of 0.95%. Given Fusemachines’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Fusemachines has less favorable growth aspects than its competitors.

Summary

Fusemachines competitors beat Fusemachines on 7 of the 13 factors compared.

Fusemachines Company Profile

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.