Financial Survey: Snowflake (NYSE:SNOW) and AudioEye (NASDAQ:AEYE)

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

Volatility & Risk

AudioEye has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Snowflake has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Profitability

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

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

Analyst Recommendations

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

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

AudioEye currently has a consensus price target of $17.00, suggesting a potential upside of 30.67%. Snowflake has a consensus price target of $202.00, suggesting a potential upside of 36.07%. Given Snowflake’s higher possible upside, analysts clearly believe Snowflake is more favorable than AudioEye.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AudioEye	$31.32 million	4.84	-$5.87 million	($0.49)	-26.55
Snowflake	$2.81 billion	17.68	-$836.10 million	($2.55)	-58.22

AudioEye has higher earnings, but lower revenue 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.

Insider & Institutional Ownership

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

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 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.