Analyzing BIO-key International (NASDAQ:BKYI) and AudioEye (NASDAQ:AEYE)

BIO-key International (NASDAQ:BKYI) and AudioEye (NASDAQ:AEYE) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Profitability

This table compares BIO-key International and AudioEye’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BIO-key International	-72.53%	-3,124.77%	-106.39%
AudioEye	-9.89%	34.49%	8.18%

Institutional & Insider Ownership

26.5% of BIO-key International shares are held by institutional investors. Comparatively, 51.1% of AudioEye shares are held by institutional investors. 5.8% of BIO-key International shares are held by insiders. Comparatively, 40.7% of AudioEye shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares BIO-key International 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
BIO-key International	$7.29 million	0.47	-$8.52 million	N/A	N/A
AudioEye	$33.35 million	6.35	-$5.87 million	($0.27)	-64.37

AudioEye has higher revenue and earnings than BIO-key International.

Analyst Recommendations

This is a summary of recent recommendations for BIO-key International and AudioEye, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BIO-key International	0	0	0	0	0.00
AudioEye	0	0	4	1	3.20

AudioEye has a consensus price target of $30.13, indicating a potential upside of 73.33%. Given AudioEye’s stronger consensus rating and higher probable upside, analysts plainly believe AudioEye is more favorable than BIO-key International.

Volatility and Risk

BIO-key International has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, AudioEye has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Summary

AudioEye beats BIO-key International on 13 of the 13 factors compared between the two stocks.

About BIO-key International

BIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.

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.