Critical Survey: Veritone (NASDAQ:VERI) versus Xylo Technologies (NASDAQ:XYLO)

Veritone (NASDAQ:VERI) and Xylo Technologies (NASDAQ:XYLO) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Volatility and Risk

Veritone has a beta of 3.15, meaning that its stock price is 215% more volatile than the S&P 500. Comparatively, Xylo Technologies has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares Veritone and Xylo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veritone	-47.97%	-649.13%	-10.32%
Xylo Technologies	N/A	N/A	N/A

Earnings & Valuation

This table compares Veritone and Xylo Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veritone	$124.88 million	0.89	-$58.62 million	($2.16)	-1.28
Xylo Technologies	$57.64 million	0.05	-$16.02 million	N/A	N/A

Xylo Technologies has lower revenue, but higher earnings than Veritone.

Insider & Institutional Ownership

39.2% of Veritone shares are owned by institutional investors. Comparatively, 0.3% of Xylo Technologies shares are owned by institutional investors. 26.6% of Veritone shares are owned by insiders. Comparatively, 2.2% of Xylo Technologies shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings for Veritone and Xylo Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veritone	0	2	2	0	2.50
Xylo Technologies	0	0	0	0	0.00

Veritone currently has a consensus target price of $4.06, indicating a potential upside of 47.19%. Given Veritone’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Veritone is more favorable than Xylo Technologies.

Summary

Veritone beats Xylo Technologies on 8 of the 12 factors compared between the two stocks.

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.

About Xylo Technologies

Xylo Technologies Ltd, a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops wireless vehicle battery charging technologies and modular electronic vehicles. The company was formerly known as Medigus Ltd. and changed its name to Xylo Technologies Ltd in April 2024. Xylo Technologies Ltd was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.