Analyzing Fusemachines (FUSE) & Its Peers

Fusemachines (NASDAQ:FUSE) is one of 276 public companies in the “IT Services” industry, but how does it weigh in compared to its competitors? We will compare Fusemachines to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fusemachines and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
Fusemachines Competitors	1943	5552	9281	332	2.47

As a group, “IT Services” companies have a potential upside of 17.54%. Given Fusemachines’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Fusemachines has less favorable growth aspects than its competitors.

Profitability

This table compares Fusemachines and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fusemachines	N/A	N/A	N/A
Fusemachines Competitors	-188.38%	-46.08%	-10.47%

Risk and Volatility

Fusemachines has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Fusemachines’ competitors have a beta of 2.15, suggesting that their average stock price is 115% more volatile than the S&P 500.

Insider and Institutional Ownership

46.8% of Fusemachines shares are owned by institutional investors. Comparatively, 36.5% of shares of all “IT Services” companies are owned by institutional investors. 31.8% of Fusemachines shares are owned by company insiders. Comparatively, 20.4% of shares of all “IT Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Fusemachines and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fusemachines	$7.71 million	-$930,000.00	-4.64
Fusemachines Competitors	$3.17 billion	$219.63 million	-48.22

Fusemachines’ competitors have higher revenue and earnings than Fusemachines. Fusemachines is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Fusemachines competitors beat Fusemachines on 7 of the 13 factors compared.

About Fusemachines

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.