Veritone (NASDAQ:VERI) and ZIX (NASDAQ:ZIXI) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.
Institutional and Insider Ownership
28.1% of Veritone shares are owned by institutional investors. Comparatively, 67.2% of ZIX shares are owned by institutional investors. 25.6% of Veritone shares are owned by company insiders. Comparatively, 20.2% of ZIX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Veritone has a beta of 3.55, suggesting that its stock price is 255% more volatile than the S&P 500. Comparatively, ZIX has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
This is a summary of current recommendations for Veritone and ZIX, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Veritone currently has a consensus price target of $30.17, indicating a potential upside of 23.53%. ZIX has a consensus price target of $10.25, indicating a potential upside of 37.77%. Given ZIX’s stronger consensus rating and higher possible upside, analysts plainly believe ZIX is more favorable than Veritone.
This table compares Veritone and ZIX’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Veritone and ZIX’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Veritone||$49.65 million||15.89||-$62.08 million||($2.85)||-8.57|
|ZIX||$173.43 million||2.45||-$14.65 million||$0.15||49.60|
ZIX has higher revenue and earnings than Veritone. Veritone is trading at a lower price-to-earnings ratio than ZIX, indicating that it is currently the more affordable of the two stocks.
ZIX beats Veritone on 10 of the 14 factors compared between the two stocks.
Veritone, Inc., together with its subsidiaries, provides artificial intelligence (AI) computing solutions in the United States and the United Kingdom. The company develops and operates aiWARE platform, an AI operating system that uses machine learning algorithms or AI models, such as cognitive queries, predictions, correlations, and analyses in real-time using AI models in various categories comprising transcription, face recognition, and object recognition to reveal valuable insights from vast amounts of structured and unstructured data. It also provides media advertising agency services, including media planning and strategy, advertisement 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. The company serves media and entertainment, government, legal and compliance, energy, and other vertical markets. It has a strategic relationship with Alteryx, Inc. to power the Alteryx analytic process automation platform with New, advanced AI capabilities. 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.
Zix Corporation provides solutions for email encryption, data loss prevention, threat protection, unified archiving, and cloud data backup in the United States, Israel, Canada, the United Kingdom, and Switzerland. The company offers Advanced Email Threat Protection, a cloud-based service that defends organizations from zero-day malware, ransomware, phishing, CEO fraud, W-2 phishing attacks, spams, and viruses in email; and Information Archive, a cloud-based email retention solution that enables user retrieval, compliance, and e-discovery. It also provides Email Encryption Service that allows a user to send encrypted email to any email user anywhere and on any Internet-enabled device; cloud-based cybersecurity solutions for small and medium businesses; information rights management, e-signatures, and secure file sharing solutions; and software-as-a-service cloud backup and recovery solutions. The company serves the healthcare, financial services, and insurance industries, as well as government sectors. Zix Corporation sells its services through a direct sales force and tele sales force; and a network of resellers and other distribution partners, including other managed service providers. The company was formerly known as ZixIt Corporation and changed its name to Zix Corporation in 2002. Zix Corporation was incorporated in 1988 and is headquartered in Dallas, Texas.