C3.ai (NYSE:AI – Get Free Report) and TaskUs (NASDAQ:TASK – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Volatility and Risk
C3.ai has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500. Comparatively, TaskUs has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.
Profitability
This table compares C3.ai and TaskUs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| C3.ai | -187.95% | -60.20% | -48.79% |
| TaskUs | 8.70% | 24.93% | 12.12% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| C3.ai | $250.27 million | 6.06 | -$288.70 million | ($3.34) | -3.12 |
| TaskUs | $1.18 billion | 0.44 | $102.28 million | $1.14 | 5.04 |
TaskUs has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than TaskUs, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
39.0% of C3.ai shares are owned by institutional investors. Comparatively, 44.6% of TaskUs shares are owned by institutional investors. 26.5% of C3.ai shares are owned by insiders. Comparatively, 31.9% of TaskUs shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for C3.ai and TaskUs, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| C3.ai | 6 | 6 | 1 | 1 | 1.79 |
| TaskUs | 2 | 4 | 1 | 1 | 2.13 |
C3.ai presently has a consensus price target of $12.92, suggesting a potential upside of 23.86%. TaskUs has a consensus price target of $11.20, suggesting a potential upside of 95.12%. Given TaskUs’ stronger consensus rating and higher probable upside, analysts plainly believe TaskUs is more favorable than C3.ai.
Summary
TaskUs beats C3.ai on 11 of the 13 factors compared between the two stocks.
About C3.ai
C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.
About TaskUs
TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.
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