Financial Contrast: Fujitsu (OTCMKTS:FJTSY) and C3.ai (NYSE:AI)

Fujitsu (OTCMKTS:FJTSY) and C3.ai (NYSE:AI) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fujitsu	N/A	N/A	N/A
C3.ai	-141.35%	-55.40%	-45.00%

Institutional & Insider Ownership

0.1% of Fujitsu shares are owned by institutional investors. Comparatively, 39.0% of C3.ai shares are owned by institutional investors. 26.5% of C3.ai shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Fujitsu and C3.ai, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fujitsu	0	2	0	0	2.00
C3.ai	6	7	1	1	1.80

C3.ai has a consensus price target of $15.87, indicating a potential upside of 72.84%. Given C3.ai’s higher probable upside, analysts plainly believe C3.ai is more favorable than Fujitsu.

Risk and Volatility

Fujitsu has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, C3.ai has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500.

Earnings and Valuation

This table compares Fujitsu and C3.ai”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fujitsu	$23.27 billion	1.46	$1.45 billion	$0.45	43.13
C3.ai	$389.06 million	3.43	-$288.70 million	($3.15)	-2.91

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

Summary

Fujitsu beats C3.ai on 8 of the 15 factors compared between the two stocks.

About Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.

About C3.ai

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.