Head-To-Head Analysis: Audioeye (NASDAQ:AEYE) & Spotify Technology (NYSE:SPOT)

Audioeye (NASDAQ:AEYE) and Spotify Technology (NYSE:SPOT) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Audioeye has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Spotify Technology has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Profitability

This table compares Audioeye and Spotify Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Audioeye	-9.05%	71.24%	11.35%
Spotify Technology	15.56%	35.73%	19.53%

Institutional & Insider Ownership

51.1% of Audioeye shares are held by institutional investors. Comparatively, 84.1% of Spotify Technology shares are held by institutional investors. 25.9% of Audioeye shares are held by company insiders. Comparatively, 0.4% of Spotify Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Audioeye and Spotify Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Audioeye	$40.31 million	2.38	-$3.08 million	($0.29)	-26.48
Spotify Technology	$19.44 billion	5.26	$2.50 billion	$12.55	39.55

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

Analyst Ratings

This is a summary of current ratings and price targets for Audioeye and Spotify Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	1	4	0	2.50
Spotify Technology	0	6	21	2	2.86

Audioeye currently has a consensus target price of $14.63, indicating a potential upside of 90.43%. Spotify Technology has a consensus target price of $655.92, indicating a potential upside of 32.13%. Given Audioeye’s higher probable upside, research analysts plainly believe Audioeye is more favorable than Spotify Technology.

Summary

Spotify Technology beats Audioeye on 12 of the 15 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 Spotify Technology

Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg.