Reviewing Aware (NASDAQ:AWRE) and HUYA (NYSE:HUYA)
by Mitch Edgeman · The Markets DailyHUYA (NYSE:HUYA – Get Free Report) and Aware (NASDAQ:AWRE – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Risk & Volatility
HUYA has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Aware has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Earnings and Valuation
This table compares HUYA and Aware”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HUYA | $832.84 million | 0.80 | -$6.57 million | ($0.09) | -32.94 |
| Aware | $17.39 million | 2.47 | -$4.43 million | ($0.27) | -7.44 |
Aware has lower revenue, but higher earnings than HUYA. HUYA is trading at a lower price-to-earnings ratio than Aware, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
23.2% of HUYA shares are owned by institutional investors. Comparatively, 24.4% of Aware shares are owned by institutional investors. 1.2% of HUYA shares are owned by company insiders. Comparatively, 28.0% of Aware shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares HUYA and Aware’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HUYA | -2.63% | 0.73% | 0.52% |
| Aware | -32.20% | -19.41% | -13.95% |
Analyst Recommendations
This is a summary of recent recommendations for HUYA and Aware, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HUYA | 1 | 3 | 1 | 1 | 2.33 |
| Aware | 1 | 0 | 0 | 0 | 1.00 |
HUYA currently has a consensus price target of $3.50, indicating a potential upside of 18.04%. Given HUYA’s stronger consensus rating and higher probable upside, equities analysts clearly believe HUYA is more favorable than Aware.
Summary
HUYA beats Aware on 9 of the 15 factors compared between the two stocks.
About HUYA
HUYA Inc., together with its subsidiaries, operates game live streaming platforms in the People's Republic of China. Its platforms enable broadcasters and viewers to interact during live streaming. The company's live streaming content also covers other entertainment content, such as talent shows, anime, outdoor activities, live chats, and other genres. In addition, it operates Nimo TV, a game live streaming platform in international markets. Further, the company provides online advertising, cnt, internet value added, and cultural and creative services. The company was founded in 2014 and is headquartered in Guangzhou, China. HUYA Inc. is a subsidiary of Tencent Holdings Limited.
About Aware
Aware, Inc., an authentication company, provides biometrics software products and solutions for government agencies and commercial entities in the United States, the United Kingdom, and internationally. The company offers biometric software solution, including Knomi, a mobile biometric framework which provides multiple biometric modality options; AwareABIS, an automated biometric identification system used for large-scale biometric identification and deduplication; AFIX suite used for small-scale law enforcement focused biometric identification; and AFIX Tracker for fingerprint, palmprint, and latent print identification, as well as AFIX Face, AFIX Verifier, AFIX Identifier, AFIX Comparator, AFIX Engine, and AFIX NIST Transaction Engine. It also provides BioSP, a biometric integration platform-as-a-service that enables biometric data processing and management functionality in a web services architecture; WebEnroll, a browser-based biometric enrollment and data management solution; and AwareID, a software-as-a-service that provides identity verification and continuous authentication capabilities. In addition, the company offers biometrics applications, such as Nexa line, a biometric search and match SDKs including Nexa Fingerprint, Nexa Face, Nexa Iris, and Nexa Voice; and AwareXM, an interoperable fingerprint matching SDK that provides fingerprint minutiae extraction, template generation, and fingerprint authentication. Further, it sells imaging products used in medical and advanced imaging application; and offers software maintenance, program management, and software engineering services. The company sells its products, services, and solutions through systems integrators, direct, and original equipment manufacturers and value added resellers channel. Aware, Inc. was incorporated in 1986 and is headquartered in Burlington, Massachusetts.