Critical Survey: ScanTech AI Systems (NASDAQ:STAI) versus C3.ai (NYSE:AI)

ScanTech AI Systems (NASDAQ:STAIGet Free Report) and C3.ai (NYSE:AIGet Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Risk & Volatility

ScanTech AI Systems has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, C3.ai has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.

Valuation and Earnings

This table compares ScanTech AI Systems and C3.ai”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ScanTech AI Systems $1.88 million 0.44 -$23.07 million ($9.20) -0.02
C3.ai $250.27 million 5.16 -$470.37 million ($3.34) -2.66

ScanTech AI Systems has higher earnings, but lower revenue than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than ScanTech AI Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ScanTech AI Systems and C3.ai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ScanTech AI Systems -477.09% -11.25% 209.23%
C3.ai -187.95% -62.44% -50.47%

Insider and Institutional Ownership

74.0% of ScanTech AI Systems shares are held by institutional investors. Comparatively, 39.0% of C3.ai shares are held by institutional investors. 2.3% of ScanTech AI Systems shares are held by company insiders. Comparatively, 26.5% of C3.ai shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for ScanTech AI Systems and C3.ai, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ScanTech AI Systems 1 0 0 0 1.00
C3.ai 6 6 1 1 1.79

C3.ai has a consensus target price of $12.92, indicating a potential upside of 45.28%. Given C3.ai’s stronger consensus rating and higher probable upside, analysts clearly believe C3.ai is more favorable than ScanTech AI Systems.

Summary

C3.ai beats ScanTech AI Systems on 10 of the 15 factors compared between the two stocks.

About ScanTech AI Systems

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Scantech AI Systems, Inc. engages in the innovation, emerging technology, and machine learning expertise. ScanTech specializes in developing advanced screening technology that provides the most accurate and fastest detection of prohibited materials. The company was founded on September 5, 2023 and is headquartered in Buford, GA.

About C3.ai

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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.

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