Analyzing Audioeye (AEYE) and New Relic (NEWR)

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

Earnings & Valuation

This table compares Audioeye and New Relic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Audioeye $5.66 million 12.15 -$5.02 million ($0.70) -12.89
New Relic $355.06 million 16.28 -$45.32 million ($0.74) -136.24

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

Volatility and Risk

Audioeye has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, New Relic has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares Audioeye and New Relic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Audioeye -88.71% -108.18% -70.43%
New Relic -6.96% -6.08% -2.13%

Analyst Ratings

This is a summary of current recommendations for Audioeye and New Relic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Audioeye 0 0 2 0 3.00
New Relic 0 3 10 1 2.86

Audioeye presently has a consensus price target of $12.75, indicating a potential upside of 41.35%. New Relic has a consensus price target of $117.27, indicating a potential upside of 16.32%. Given Audioeye’s stronger consensus rating and higher possible upside, research analysts plainly believe Audioeye is more favorable than New Relic.

Institutional and Insider Ownership

5.2% of Audioeye shares are owned by institutional investors. Comparatively, 82.3% of New Relic shares are owned by institutional investors. 23.7% of Audioeye shares are owned by company insiders. Comparatively, 20.4% of New Relic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

New Relic beats Audioeye on 9 of the 15 factors compared between the two stocks.

Audioeye Company Profile

AudioEye, Inc. provides Web accessibility solutions to Internet, print, broadcast, and other media to people regardless of their network connection, device, location, or disabilities in the United States. The company develops patented Internet content publication and distribution software that enables conversion of media into accessible formats, as well as allows for real time distribution on various Internet connected devices. It provides AudioEye Ally Platform, which consists of Digital Accessibility Platform and Ally Managed Service that are offered as an Internet cloud software as a service to Website owners, publishers, developers, and operators. The company's Digital Accessibility Platform, a self-service solution for clients who want to own the accessibility process from beginning to end and puts the power of accessibility issue tracking, auditing, and remediation in the hands of developers to enhance the usability and accessibility of their Web infrastructure. Its Ally Managed Service allows AudioEye accessibility engineers and AT usability testers to do heavy lifting; and AudioEye Ally Toolbar that provides easy-to-use and cloud-based assistive tools, which allow its clients to enhance the customer experience for those looking to customize the way in which they engage with the Web browser. The company also markets and sells managed services comprising product support, accessibility training from accessibility engineers and subject matter experts, manual assistive technology usability testing, video transcription and captioning, PDF accessibility solutions, audio description authoring, accessibility help desk, and others. It serves directly, as well as through strategic business and development referral partners to corporate enterprises; educational institutions; federal, state, and local governments and agencies; and not-for-profit organizations. The company was founded in 2005 and is headquartered in Tucson, Arizona.

New Relic Company Profile

New Relic, Inc., a software-as-a-service company, provides various digital products worldwide. Its cloud-based platform and suite of products include New Relic Platform, which enable organizations to collect, store, and analyze data. The company offers New Relic Application Performance Management that provides visibility into the performance and usage of server-based applications, such as data pertaining to response time, transaction throughput, error rates, top transactions, and user satisfaction; New Relic Mobile, which provides code-level visibility into the performance and health of mobile applications running on the iOS and Android mobile operating systems; and New Relic Browser that monitors the page view experiences of actual end-users for desktop and mobile browser-based applications. It also provides New Relic Synthetics, which simulates usage and reproduces business-critical functionality that enables its users to test their software throughout the entire development life cycle; New Relic Infrastructure that provides a view of the health and configuration changes for an enterprise's entire host ecosystem across various environments; and New Relic Insights that enables technology and business users to perform real-time analysis. In addition, the company offers New Relic Applied Intelligence platform; New Relic's alerting platform, a centralized notification system that delivers alerts from across the products that make up the New Relic Platform; and New Relic's plugins architecture, which offers a plugin architecture, including application programming interfaces and software development kits for customers and partners to embed and extend its solution into their products. The company sells its products through direct sales organizations, online and offline sales, and marketing activities. New Relic, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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