C3.ai (AI) & Its Competitors Head to Head Analysis

C3.ai (NYSE:AI) is one of 955 public companies in the “Software” industry, but how does it compare to its rivals? We will compare C3.ai to related businesses based on the strength of its earnings, dividends, profitability, risk, valuation, analyst recommendations and institutional ownership.

Volatility & Risk

C3.ai has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500. Comparatively, C3.ai’s rivals have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for C3.ai and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C3.ai	7	5	2	0	1.64
C3.ai Competitors	5704	21429	44638	1489	2.57

C3.ai presently has a consensus price target of $9.62, indicating a potential downside of 21.78%. As a group, “Software” companies have a potential upside of 25.71%. Given C3.ai’s rivals stronger consensus rating and higher possible upside, analysts clearly believe C3.ai has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares C3.ai and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
C3.ai	$232.38 million	-$470.37 million	-4.00
C3.ai Competitors	$1.87 billion	$383.51 million	112.46

C3.ai’s rivals have higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

C3.ai pays an annual dividend of $0.90 per share and has a dividend yield of 7.3%. C3.ai pays out -29.2% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 2.0% and pay out 50.4% of their earnings in the form of a dividend. C3.ai is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares C3.ai and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C3.ai	-192.10%	-61.25%	-49.03%
C3.ai Competitors	-630.58%	17.61%	-8.96%

Insider & Institutional Ownership

39.0% of C3.ai shares are owned by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are owned by institutional investors. 19.8% of C3.ai shares are owned by company insiders. Comparatively, 19.7% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

C3.ai rivals beat C3.ai on 10 of the 15 factors compared.

About C3.ai

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.