Critical Review: Veritone (NASDAQ:VERI) and Xperi (NYSE:XPER)
by Michael Walen · The Markets DailyVeritone (NASDAQ:VERI – Get Free Report) and Xperi (NYSE:XPER – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Institutional & Insider Ownership
39.2% of Veritone shares are owned by institutional investors. Comparatively, 94.3% of Xperi shares are owned by institutional investors. 7.4% of Veritone shares are owned by insiders. Comparatively, 3.2% of Xperi 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.
Profitability
This table compares Veritone and Xperi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veritone | -111.90% | -159.15% | -39.63% |
| Xperi | -6.89% | 4.43% | 2.97% |
Analyst Ratings
This is a summary of current recommendations and price targets for Veritone and Xperi, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veritone | 1 | 1 | 3 | 0 | 2.40 |
| Xperi | 1 | 1 | 2 | 0 | 2.25 |
Veritone presently has a consensus target price of $6.12, suggesting a potential upside of 1,222.89%. Xperi has a consensus target price of $11.00, suggesting a potential upside of 81.22%. Given Veritone’s stronger consensus rating and higher probable upside, analysts plainly believe Veritone is more favorable than Xperi.
Valuation and Earnings
This table compares Veritone and Xperi”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veritone | $92.19 million | 0.51 | -$111.73 million | ($0.38) | -1.22 |
| Xperi | $448.11 million | 0.66 | -$56.34 million | ($0.68) | -8.93 |
Xperi has higher revenue and earnings than Veritone. Xperi is trading at a lower price-to-earnings ratio than Veritone, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Veritone has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.
About Veritone
Veritone, Inc. (NASDAQ: VERI) is an artificial intelligence technology company that develops software for organizing, analyzing and generating insights from large volumes of data. Its platform is designed to help organizations apply AI to audio, video, text and other data sources across business and public-sector applications. The company’s primary technology platform, aiWARE, provides access to a broad range of AI models and tools through a unified operating environment. Veritone also offers solutions for digital media management, including tools that help media organizations, sports teams and other content owners manage, search, monetize and distribute audio and video assets.
About Xperi
Xperi develops technology for entertainment and connected devices, serving markets that include television, consumer electronics and automotive. Its products and platforms help manufacturers and media companies deliver content, audio and interactive experiences across connected screens and vehicles. The company’s brands and offerings include TiVo, whose products support television discovery and streaming, and DTS, which provides audio technologies. Xperi also develops HD Radio and automotive solutions such as DTS AutoStage, as well as services for smart TVs and other consumer devices.