Analyzing Castlight Health (NYSE:CSLT) and Veritone (NYSE:VERI)

Castlight Health (NYSE:CSLT) and Veritone (NASDAQ:VERI) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Castlight Health and Veritone, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castlight Health 0 1 4 0 2.80
Veritone 0 1 5 0 2.83

Castlight Health currently has a consensus price target of $5.20, suggesting a potential upside of 80.56%. Veritone has a consensus price target of $13.33, suggesting a potential upside of 78.02%. Given Castlight Health’s higher probable upside, analysts plainly believe Castlight Health is more favorable than Veritone.

Institutional & Insider Ownership

53.4% of Castlight Health shares are held by institutional investors. Comparatively, 17.9% of Veritone shares are held by institutional investors. 17.4% of Castlight Health shares are held by company insiders. Comparatively, 37.0% of Veritone shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Castlight Health and Veritone’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Castlight Health $156.40 million 2.65 -$39.71 million ($0.16) -18.00
Veritone $27.05 million 5.63 -$61.10 million ($3.48) -2.15

Castlight Health has higher revenue and earnings than Veritone. Castlight Health is trading at a lower price-to-earnings ratio than Veritone, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Castlight Health and Veritone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castlight Health -23.04% -11.47% -8.54%
Veritone -185.03% -86.72% -48.36%

Risk and Volatility

Castlight Health has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Veritone has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.

Summary

Castlight Health beats Veritone on 8 of the 14 factors compared between the two stocks.

Castlight Health Company Profile

Castlight Health, Inc. provides a software-as-a-service platform used for health benefits navigation for employees in the United States. Its platform matches employees to the resources their employers make available to them; managing a condition; and assists them to manage their benefits. The company also offers implementation, user and customer support, and marketplace services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government. The company was formerly known as Ventana Health Services and changed its name to Castlight Health, Inc. in April 2010. Castlight Health, Inc. was founded in 2008 and is headquartered in San Francisco, California.

Veritone Company Profile

Veritone, Inc. provides artificial intelligence (AI) and computing solutions in the United States and the United Kingdom. It develops and operates aiWARE platform, an AI operating system that unlocks the power of cognitive computing to transform audio, video, and other unstructured data, as well as analyzes it in conjunction with structured data in an orchestrated and automated manner to generate actionable intelligence. 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 owners and broadcasters; legal and compliance markets, including consulting firms, managed services providers, large law firms and corporate legal departments, financial services, and healthcare and other companies; state, local, federal, and international law enforcement agencies, intelligence agencies, and other governmental agencies, as well as resellers and system integrators; and politics market, including political parties, elected officials and political campaigns, political action committees, and special interest groups. The company was formerly known as Veritone Delaware, Inc. and changed its name to Veritone, Inc. in July 2014. Veritone, Inc. was founded in 2014 and is headquartered in Costa Mesa, California.

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