Reviewing Veritone (NASDAQ:VERI) & HeartCore Enterprises (NASDAQ:HTCR)

HeartCore Enterprises (NASDAQ:HTCR) and Veritone (NASDAQ:VERI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Earnings & Valuation

This table compares HeartCore Enterprises and Veritone’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HeartCore Enterprises	$21.85 million	0.89	-$4.19 million	($0.19)	-4.88
Veritone	$127.56 million	0.99	-$58.62 million	($2.15)	-1.59

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

Risk and Volatility

HeartCore Enterprises has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Veritone has a beta of 2.97, suggesting that its share price is 197% more volatile than the S&P 500.

Institutional & Insider Ownership

1.7% of HeartCore Enterprises shares are owned by institutional investors. Comparatively, 39.2% of Veritone shares are owned by institutional investors. 63.1% of HeartCore Enterprises shares are owned by insiders. Comparatively, 26.4% of Veritone shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for HeartCore Enterprises and Veritone, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HeartCore Enterprises	0	0	0	0	N/A
Veritone	0	2	0	0	2.00

Veritone has a consensus target price of $3.50, indicating a potential upside of 2.49%. Given Veritone’s higher possible upside, analysts plainly believe Veritone is more favorable than HeartCore Enterprises.

Profitability

This table compares HeartCore Enterprises and Veritone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HeartCore Enterprises	-19.18%	-27.80%	-14.04%
Veritone	-42.97%	-120.37%	-12.97%

Summary

Veritone beats HeartCore Enterprises on 6 of the 11 factors compared between the two stocks.

About HeartCore Enterprises

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also provides data analytics services that allow enterprise businesses to create web experiences for their clients. In addition, it operates a digital transformation business that provides customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. The company was founded in 2009 and is headquartered in Tokyo, Japan.

About Veritone

Veritone, Inc., together with its subsidiaries, engages in the provision of artificial intelligence (AI) computing solutions and services in the United States, the United Kingdom, France, Australia, Israel, and India. It develops and operates aiWARE platform, an AI operating system, that uses machine learning algorithms or AI models designed to mimic human cognitive functions, such as perception, prediction, and problem solving and optimization, as well as enables users to transform unstructured data into structured data, and analyze and optimize data to drive business processes and insights. The company also provides media advertising agency services, including media planning and strategy, media buying and placement, campaign messaging, clearance verification and attribution, and custom analytics directly to advertisers through outbound sales networking, and client and partner referrals, as well as indirectly through advertising agencies or marketing consultants. It serves media and entertainment, government, legal and compliance, energy, and other vertical markets. The company was formerly known as Veritone Delaware, Inc. and changed its name to Veritone, Inc. in July 2014. Veritone, Inc. was incorporated in 2014 and is headquartered in Denver, Colorado.