Contrasting Snowflake (NYSE:SNOW) and AudioEye (NASDAQ:AEYE)

Snowflake (NYSE:SNOW) and AudioEye (NASDAQ:AEYE) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Volatility and Risk

Snowflake has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, AudioEye has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Earnings and Valuation

This table compares Snowflake and AudioEye’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snowflake	$2.81 billion	17.53	-$836.10 million	($2.55)	-57.73
AudioEye	$31.32 million	4.41	-$5.87 million	($0.49)	-24.18

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

Profitability

This table compares Snowflake and AudioEye’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snowflake	-29.79%	-13.79%	-9.39%
AudioEye	-18.75%	-27.55%	-10.18%

Analyst Recommendations

This is a summary of recent recommendations for Snowflake and AudioEye, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snowflake	2	9	22	0	2.61
AudioEye	0	0	3	0	3.00

Snowflake currently has a consensus price target of $202.00, indicating a potential upside of 37.22%. AudioEye has a consensus price target of $17.00, indicating a potential upside of 43.46%. Given AudioEye’s stronger consensus rating and higher possible upside, analysts plainly believe AudioEye is more favorable than Snowflake.

Insider and Institutional Ownership

65.1% of Snowflake shares are owned by institutional investors. Comparatively, 51.1% of AudioEye shares are owned by institutional investors. 8.3% of Snowflake shares are owned by insiders. Comparatively, 13.5% of AudioEye shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

AudioEye beats Snowflake on 8 of the 14 factors compared between the two stocks.

About Snowflake

Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.

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.