Head to Head Contrast: Clearwater Analytics (NYSE:CWAN) and AudioEye (NASDAQ:AEYE)

AudioEye (NASDAQ:AEYE) and Clearwater Analytics (NYSE:CWAN) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Profitability

This table compares AudioEye and Clearwater Analytics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AudioEye	-10.70%	12.34%	3.31%
Clearwater Analytics	-1.14%	3.55%	2.61%

Insider and Institutional Ownership

51.1% of AudioEye shares are held by institutional investors. Comparatively, 50.1% of Clearwater Analytics shares are held by institutional investors. 40.7% of AudioEye shares are held by company insiders. Comparatively, 3.5% of Clearwater Analytics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

AudioEye has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Clearwater Analytics has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AudioEye and Clearwater Analytics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AudioEye	0	0	4	1	3.20
Clearwater Analytics	1	3	5	0	2.44

AudioEye presently has a consensus target price of $27.88, indicating a potential downside of 12.81%. Clearwater Analytics has a consensus target price of $30.67, indicating a potential downside of 3.65%. Given Clearwater Analytics’ higher probable upside, analysts clearly believe Clearwater Analytics is more favorable than AudioEye.

Earnings and Valuation

This table compares AudioEye and Clearwater Analytics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AudioEye	$31.32 million	12.13	-$5.87 million	($0.28)	-114.18
Clearwater Analytics	$368.17 million	21.30	-$21.63 million	($0.02)	-1,591.50

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

Summary

AudioEye beats Clearwater Analytics on 9 of the 15 factors compared between the two stocks.

About AudioEye

AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.

About Clearwater Analytics

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally. It offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. The company’s Clearwater Prism SaaS-based data and reporting platform for investment data delivers a range of product modules, including Prism reporting and statements, Prism connectors, Prism data ops, and Prism managed services. It also provides Clearwater JUMP that provides a modular front, middle and back office solution to investment managers, private banks, and insurer, as well as portfolio management and order management, unit-linked funds, tri-partite templates, and full trade life cycle solutions. In addition, the company offers Clearwater LPx, a full-service solution for private funds that delivers complete, timely, accurate, and consumable data for limited partnerships; and Clearwater MLx, a comprehensive mortgage loan investment solution that provides investors to drive growth and make informed decisions, oversight, and reporting capabilities for mortgage loan investments, as well as enhances risk reporting, servicer tracking, oversight, and accounting capabilities. The company was founded in 2004 and is headquartered in Boise, Idaho.