Gravity (NASDAQ:GRVY – Get Free Report) and Veritone (NASDAQ:VERI – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
Institutional and Insider Ownership
9.9% of Gravity shares are owned by institutional investors. Comparatively, 39.2% of Veritone shares are owned by institutional investors. 26.6% of Veritone shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Gravity has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Veritone has a beta of 3.21, meaning that its stock price is 221% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gravity | $516.65 billion | 0.00 | $105.61 million | $8.98 | 7.00 |
| Veritone | $124.88 million | 1.08 | -$58.62 million | ($2.16) | -1.63 |
Gravity has higher revenue and earnings than Veritone. Veritone is trading at a lower price-to-earnings ratio than Gravity, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gravity and Veritone’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gravity | 14.98% | 34.76% | 28.79% |
| Veritone | -47.97% | -649.13% | -10.32% |
Analyst Ratings
This is a breakdown of recent ratings for Gravity and Veritone, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gravity | 0 | 0 | 0 | 0 | 0.00 |
| Veritone | 0 | 3 | 0 | 0 | 2.00 |
Veritone has a consensus price target of $2.88, indicating a potential downside of 18.56%. Given Veritone’s stronger consensus rating and higher probable upside, analysts plainly believe Veritone is more favorable than Gravity.
Summary
Gravity beats Veritone on 7 of the 13 factors compared between the two stocks.
About Gravity
Gravity Co., Ltd. develops and publishes online and mobile games worldwide. It offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Landverse. Its mobile games portfolio includes Ragnarok M; Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; Ragnarok Arena; WITH ISLAND; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; Generation Zombie; Ragnarok Idle Adventure; Ragnarok 20 Heroes; White Chord; WITH: Whale In The High; Ragnarok Lost Memories; and Paladog Tactics. It also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; Pigromance for Steam, Stove, Nintendo Switch, Xbox One, Xbox Series X|S; ALTF4 11 for Steam and Stove; Wetory for Steam, Stove, Nintedo Switch; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin, and Kongsuni; and markets dolls, stationery, food, and other character based merchandises, as well as game manuals, monthly magazines, and other publications; PC games, including Puzzle Platformer, ALTF42, Ragnarok ZERO, KAMiBAKO-Mythology of Cube, Psychodemic, and FINAL KNIGHT; social network games and mobile games, such as Ragnarok V: Returns, Ragnarok: The Lost Memories and Ragnrok Begins in-house; and web-browser-based games, such as Ragnarok Prequel and Ragnarok Prequel II. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.
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.
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