Unisys (NYSE:UIS) versus Fusemachines (NASDAQ:FUSE) Head-To-Head Analysis

Fusemachines (NASDAQ:FUSE) and Unisys (NYSE:UIS) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Fusemachines and Unisys, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
Unisys	1	2	2	0	2.20

Unisys has a consensus price target of $4.50, suggesting a potential upside of 66.05%. Given Unisys’ stronger consensus rating and higher probable upside, analysts clearly believe Unisys is more favorable than Fusemachines.

Risk & Volatility

Fusemachines has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Unisys has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fusemachines	N/A	N/A	N/A
Unisys	-21.65%	-14.09%	2.41%

Earnings and Valuation

This table compares Fusemachines and Unisys”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fusemachines	$7.71 million	2.59	-$930,000.00	($0.13)	-5.31
Unisys	$1.95 billion	0.10	-$339.80 million	($5.89)	-0.46

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

Insider & Institutional Ownership

46.8% of Fusemachines shares are owned by institutional investors. Comparatively, 86.9% of Unisys shares are owned by institutional investors. 31.8% of Fusemachines shares are owned by company insiders. Comparatively, 11.6% of Unisys shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Unisys beats Fusemachines on 8 of the 14 factors compared between the two stocks.

About Fusemachines

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.

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.