Reviewing Digital Turbine (NASDAQ:APPS) and Audioeye (NASDAQ:AEYE)

Audioeye (NASDAQ:AEYE) and Digital Turbine (NASDAQ:APPS) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for Audioeye and Digital Turbine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	0	4	0	2.60
Digital Turbine	1	2	1	0	2.00

Audioeye presently has a consensus price target of $22.00, suggesting a potential upside of 131.82%. Digital Turbine has a consensus price target of $7.75, suggesting a potential upside of 47.06%. Given Audioeye’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Audioeye is more favorable than Digital Turbine.

Institutional and Insider Ownership

51.1% of Audioeye shares are owned by institutional investors. Comparatively, 63.7% of Digital Turbine shares are owned by institutional investors. 28.8% of Audioeye shares are owned by company insiders. Comparatively, 6.1% of Digital Turbine shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Audioeye has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Digital Turbine has a beta of 2.24, indicating that its stock price is 124% more volatile than the S&P 500.

Valuation and Earnings

This table compares Audioeye and Digital Turbine”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Audioeye	$35.20 million	3.35	-$4.25 million	($0.28)	-33.89
Digital Turbine	$490.51 million	1.20	-$92.10 million	($0.73)	-7.22

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

Profitability

This table compares Audioeye and Digital Turbine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Audioeye	-8.88%	40.94%	9.77%
Digital Turbine	-14.59%	12.12%	2.27%

Summary

Audioeye beats Digital Turbine on 10 of the 14 factors compared between the two stocks.

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 Digital Turbine

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.