Contrasting Pixelworks (NASDAQ:PXLW) & Veritone (NASDAQ:VERI)

Veritone (NASDAQ:VERI – Get Free Report) and Pixelworks (NASDAQ:PXLW – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

39.2% of Veritone shares are owned by institutional investors. Comparatively, 21.4% of Pixelworks shares are owned by institutional investors. 7.4% of Veritone shares are owned by insiders. Comparatively, 4.7% of Pixelworks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Veritone and Pixelworks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veritone 1 1 3 0 2.40
Pixelworks 1 0 2 0 2.33

Veritone currently has a consensus price target of $6.12, suggesting a potential upside of 353.03%. Pixelworks has a consensus price target of $16.00, suggesting a potential upside of 119.27%. Given Veritone’s stronger consensus rating and higher possible upside, equities analysts plainly believe Veritone is more favorable than Pixelworks.

Profitability

This table compares Veritone and Pixelworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veritone -111.90% -159.15% -39.63%
Pixelworks N/A -28.77% -14.64%

Earnings & Valuation

This table compares Veritone and Pixelworks”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veritone $92.19 million 1.47 -$111.73 million ($0.38) -3.56
Pixelworks $690,000.00 63.98 -$22.50 million ($1.63) -4.48

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

Risk and Volatility

Veritone has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Pixelworks has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Summary

Veritone beats Pixelworks on 9 of the 14 factors compared between the two stocks.

About Veritone

(Get Free Report)

Veritone, Inc., together with its subsidiaries, engages in the provision of artificial intelligence (AI) computing solutions and services in the United States, the United Kingdom, France, Australia, Israel, and India. It develops and operates aiWARE platform, an AI operating system, that uses machine learning algorithms or AI models designed to mimic human cognitive functions, such as perception, prediction, and problem solving and optimization, as well as enables users to transform unstructured data into structured data, and analyze and optimize data to drive business processes and insights. The company also provides media advertising agency services, including media planning and strategy, media 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. It serves media and entertainment, government, legal and compliance, energy, and other vertical markets. 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.

About Pixelworks

(Get Free Report)

Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets in the United States, Japan, China, Taiwan, Korea, and Europe. The company offers imageprocessor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; visual processor integrated circuits that works with a mobile application processor; and transcoder integrated circuits which includes software that control the operations and signal processing for converting multiple bitrates, resolutions and codecs to provide bandwidth efficient video transmissions based on industry standard protocols. It also provides software and platform licensing products comprising Pixelworks Pro Software, a software that enables development and customize the look and feel of mobile products by use of various features, such as absolute color accuracy, HDR tone mapping, SDR-to-HDR conversion, and others; and TrueCut Motion Platform, content creation tool which provides the ability to dial in a motion look on a shot-by-shot basis. The company distributes its products to integrators, branded manufacturers, and branded suppliers. Pixelworks, Inc. was founded in 1997 and is based in Portland, Oregon.

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