Head to Head Analysis: Docusign (NASDAQ:DOCU) & Audioeye (NASDAQ:AEYE)

Docusign (NASDAQ:DOCU) and Audioeye (NASDAQ:AEYE) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings for Docusign and Audioeye, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Docusign 0 3 8 0 2.73
Audioeye 0 0 2 0 3.00

Docusign currently has a consensus price target of $61.10, suggesting a potential upside of 14.85%. Audioeye has a consensus price target of $12.75, suggesting a potential upside of 75.38%. Given Audioeye’s stronger consensus rating and higher possible upside, analysts clearly believe Audioeye is more favorable than Docusign.

Institutional & Insider Ownership

61.2% of Docusign shares are held by institutional investors. Comparatively, 5.6% of Audioeye shares are held by institutional investors. 13.6% of Docusign shares are held by company insiders. Comparatively, 23.7% of Audioeye shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Docusign and Audioeye’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Docusign $700.97 million 13.19 -$426.46 million ($2.90) -18.34
Audioeye $5.66 million 9.81 -$5.02 million ($0.70) -10.39

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

Volatility and Risk

Docusign has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Audioeye has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Profitability

This table compares Docusign and Audioeye’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Docusign -26.54% -22.27% -9.86%
Audioeye -92.33% -121.68% -74.78%

Summary

Docusign beats Audioeye on 8 of the 13 factors compared between the two stocks.

About Docusign

DocuSign, Inc. provides cloud based software in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise businesses, commercial businesses, and small businesses, such as professionals, sole proprietorships and individuals. The company was 2003 and is headquartered in San Francisco, California.

About Audioeye

AudioEye, Inc. provides Web accessibility solutions to Internet, print, broadcast, and other media to people regardless of their network connection, device, location, or disabilities in the United States. The company develops patented Internet content publication and distribution software that enables conversion of media into accessible formats, as well as allows for real time distribution on various Internet connected devices. It provides AudioEye Ally Platform, which consists of Digital Accessibility Platform and Ally Managed Service that are offered as an Internet cloud software as a service to Website owners, publishers, developers, and operators. The company's Digital Accessibility Platform, a self-service solution for clients who want to own the accessibility process from beginning to end and puts the power of accessibility issue tracking, auditing, and remediation in the hands of developers to enhance the usability and accessibility of their Web infrastructure. Its Ally Managed Service allows AudioEye accessibility engineers and AT usability testers to do heavy lifting; and AudioEye Ally Toolbar that provides easy-to-use and cloud-based assistive tools, which allow its clients to enhance the customer experience for those looking to customize the way in which they engage with the Web browser. The company also markets and sells managed services comprising product support, accessibility training from accessibility engineers and subject matter experts, manual assistive technology usability testing, video transcription and captioning, PDF accessibility solutions, audio description authoring, accessibility help desk, and others. It serves directly, as well as through strategic business and development referral partners to corporate enterprises; educational institutions; federal, state, and local governments and agencies; and not-for-profit organizations. The company was founded in 2005 and is headquartered in Tucson, Arizona.

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