Trend Micro (OTCMKTS:TMICY – Get Free Report) and Audioeye (NASDAQ:AEYE – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares Trend Micro and Audioeye’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trend Micro | 12.30% | 28.58% | 8.73% |
| Audioeye | -7.12% | 163.66% | 19.57% |
Analyst Ratings
This is a breakdown of recent recommendations for Trend Micro and Audioeye, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trend Micro | 1 | 0 | 0 | 1 | 2.50 |
| Audioeye | 1 | 1 | 4 | 0 | 2.50 |
Audioeye has a consensus price target of $14.62, suggesting a potential upside of 12.24%. Given Audioeye’s higher possible upside, analysts plainly believe Audioeye is more favorable than Trend Micro.
Institutional and Insider Ownership
0.1% of Trend Micro shares are held by institutional investors. Comparatively, 51.1% of Audioeye shares are held by institutional investors. 25.9% 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 is poised for long-term growth.
Valuation & Earnings
This table compares Trend Micro and Audioeye”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trend Micro | $1.85 billion | 3.25 | $231.30 million | $1.76 | 26.06 |
| Audioeye | $40.31 million | 4.10 | -$3.08 million | ($0.24) | -54.29 |
Trend Micro has higher revenue and earnings than Audioeye. Audioeye is trading at a lower price-to-earnings ratio than Trend Micro, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Trend Micro has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Audioeye has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.
Summary
Audioeye beats Trend Micro on 8 of the 14 factors compared between the two stocks.
About Trend Micro
Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.
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.
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