Head-To-Head Comparison: Acuity (NYSE:AYI) and XIAO-I (NASDAQ:AIXI)

Acuity (NYSE:AYI) and XIAO-I (NASDAQ:AIXI) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares Acuity and XIAO-I”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acuity	$4.35 billion	2.10	$396.60 million	$13.64	22.05
XIAO-I	$12.33 million	0.23	-$101.22 million	N/A	N/A

Acuity has higher revenue and earnings than XIAO-I.

Profitability

This table compares Acuity and XIAO-I’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acuity	9.37%	20.74%	12.20%
XIAO-I	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Acuity and XIAO-I, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acuity	0	4	5	0	2.56
XIAO-I	1	0	0	0	1.00

Acuity currently has a consensus target price of $369.17, indicating a potential upside of 22.72%. Given Acuity’s stronger consensus rating and higher probable upside, analysts clearly believe Acuity is more favorable than XIAO-I.

Volatility & Risk

Acuity has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, XIAO-I has a beta of 14.41, indicating that its share price is 1,341% more volatile than the S&P 500.

Institutional & Insider Ownership

98.2% of Acuity shares are held by institutional investors. Comparatively, 4.0% of XIAO-I shares are held by institutional investors. 2.9% of Acuity shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Acuity beats XIAO-I on 11 of the 12 factors compared between the two stocks.

About Acuity

Acuity Brands, Inc. provides lighting, lighting controls, building management system, location-aware applications in the United States and internationally. The company operates in two segments, Acuity Brands Lighting and Lighting Controls (ABL); and the Intelligent Spaces Group (ISG). The ABL segment provides commercial, architectural, and specialty lighting solutions, as well as lighting controls and components for various indoor and outdoor applications under the A-Light, Aculux, American Electric Lighting, Cyclone, Dark to Light, eldoLED, Eureka, Gotham, Healthcare Lighting, Holophane, Hydrel, Indy, IOTA, Juno, Lithonia Lighting, Luminaire LED, Luminis, Mark Architectural Lighting, nLight, OPTOTRONIC, Peerless, RELOCWiring Solutions, and Sensor Switch. This segment serves electrical distributors, retail home improvement centers, electric utilities, national accounts, original equipment manufacturers, digital retailers, lighting showrooms, and energy service companies. The ISG segment offers building management solutions, such as products for controlling heating, ventilation, air conditioning, lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems; and building management software that enhances building system management and automates labor intensive tasks. This segment serves system integrators, as well as retail stores, airports, and enterprise campuses. The company offers its products and solutions under the Atrius, Distech Controls, and KE2 Therm Solutions brands. Acuity Brands, Inc. was incorporated in 2001 and is headquartered in Atlanta, Georgia.

About XIAO-I

Xiao-I Corporation, through its subsidiary, Shanghai Xiao-i Robot Technology Co., Ltd., provides software services in the People’s Republic of China. It offers conversational AI platform that uses deep learning, data enhancement, active learning technologies for dialog management, context processing mechanisms, and driven by a learning system; knowledge fusion platform which integrates Q&A, documents, multimedia, information forms, business processes, knowledge graphs, and multimodal; intelligence voice platform to enhance intelligent speech solutions, realizing the macro processes of intelligent IVP, intelligent outbound calls, speech analysis, agent assistance, and human-computer interaction; and hyperautomation platform that integrates technologies, such as OCR, NLP, and visualized data mining and analysis that enables users to realize business and process automation. The company also provides data intelligence platform which integrates data assets, manages the entire life cycle of data that realizes the entire cycles of data integration, processing, transformation, analysis, and mining; cloud platform that integrates NLP, speech recognition, image recognition, and data analysis capabilities; and intelligent construction support platform which offers parsing, reconstruction, visualization, and multi-dimensional analysis of construction drawings. In addition, it offers vision analysis platform that uses various computer vision-related technologies to apply OCR, detection, video, and image analysis; intelligent hardware support platform which provides the framework of signal collection, processing, analysis, prediction, and others; and metaverse platform that develops virtual digital human. It serves its products to large and medium-sized contact centers, financial institutions, communication operators, government services, industrial manufacturing, medical care, and others. The company was incorporated in 2018 and is based in Shanghai, China.