Reviewing AudioEye (NASDAQ:AEYE) and Skillsoft (NASDAQ:SKIL)

AudioEye (NASDAQ:AEYE – Get Rating) and Skillsoft (NASDAQ:SKIL – Get Rating) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AudioEye and Skillsoft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AudioEye	0	0	1	0	3.00
Skillsoft	0	1	3	0	2.75

AudioEye currently has a consensus target price of $9.50, indicating a potential upside of 40.53%. Skillsoft has a consensus target price of $6.00, indicating a potential upside of 252.94%. Given Skillsoft’s higher probable upside, analysts plainly believe Skillsoft is more favorable than AudioEye.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AudioEye	-47.11%	-94.43%	-47.66%
Skillsoft	-108.77%	-5.96%	-2.77%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AudioEye	$28.67 million	2.71	-$14.21 million	($1.19)	-5.68
Skillsoft	$567.39 million	0.49	-$96.07 million	($4.04)	-0.42

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

Insider & Institutional Ownership

16.9% of AudioEye shares are held by institutional investors. Comparatively, 72.8% of Skillsoft shares are held by institutional investors. 45.1% of AudioEye shares are held by insiders. Comparatively, 21.7% of Skillsoft shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

AudioEye has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Skillsoft has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Summary

Skillsoft beats AudioEye on 8 of the 14 factors compared between the two stocks.

About AudioEye

(Get Rating)

AudioEye, Inc. engages in the provision of digital accessibility technology solutions. It offers patented, Internet content publication and distribution software which enables the conversion of any media into an accessible format and allowing real-time distribution to end-users on any Internet connected device. The company was founded by Nathaniel T. Bradley, Sean D. Bradley, David J. Ide, and James G. Crawford on May 20, 2005 and is headquartered in Tucson, AZ.

About Skillsoft

(Get Rating)

Skillsoft Corp. provides corporate digital learning services in the United States and internationally. The company operates through Content, Global Knowledge, and SumTotal segments. It offers enterprise learning solutions to prepare organizations for the future of work, as well as enable them to overcome critical skill gaps, drive demonstrable behavior-change, and unlock the potential in their greatest assets. In addition, it provides various platform capabilities, such as open platform, custom channels and journeys, administrator-promoted content, and flexible assignments, tracking and in-depth reporting, training groups, and records management. Further, the company offers learning management systems and talent management software. The company is based in Nashua, New Hampshire.