Comparing Aterian (ATER) and Its Competitors

Aterian (NASDAQ:ATER) is one of 260 publicly-traded companies in the “Technology Services” industry, but how does it weigh in compared to its rivals? We will compare Aterian to similar companies based on the strength of its analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Aterian and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aterian	0	1	0	0	2.00
Aterian Competitors	446	2063	4555	221	2.62

Aterian presently has a consensus target price of $4.00, indicating a potential upside of 147.68%. As a group, “Technology Services” companies have a potential upside of 18.78%. Given Aterian’s higher possible upside, equities analysts plainly believe Aterian is more favorable than its rivals.

Valuation and Earnings

This table compares Aterian and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Aterian	$99.04 million	-$11.86 million	-1.10
Aterian Competitors	$1.40 billion	$32.10 million	-15.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aterian	-11.25%	-35.75%	-20.06%
Aterian Competitors	-270.79%	-106.28%	-20.29%

Volatility and Risk

Aterian has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Aterian’s rivals have a beta of -13.69, indicating that their average share price is 1,469% less volatile than the S&P 500.

Institutional and Insider Ownership

7.0% of Aterian shares are owned by institutional investors. Comparatively, 37.3% of shares of all “Technology Services” companies are owned by institutional investors. 19.5% of Aterian shares are owned by insiders. Comparatively, 21.0% of shares of all “Technology Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Aterian rivals beat Aterian on 7 of the 13 factors compared.

Aterian Company Profile

Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.