Critical Survey: Core AI (CHAI) versus Its Peers

Core AI (NASDAQ:CHAI) is one of 186 public companies in the “Entertainment” industry, but how does it compare to its peers? We will compare Core AI to related companies based on the strength of its risk, dividends, valuation, earnings, analyst recommendations, profitability and institutional ownership.

Volatility and Risk

Core AI has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Core AI’s peers have a beta of 0.93, indicating that their average stock price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares Core AI and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Core AI	$52.51 million	-$31.59 million	-0.06
Core AI Competitors	$4.62 billion	$76.31 million	13.31

Core AI’s peers have higher revenue and earnings than Core AI. Core AI is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Core AI pays an annual dividend of $0.32 per share and has a dividend yield of 120.3%. Core AI pays out -7.3% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 18.9% and pay out 80.1% of their earnings in the form of a dividend. Core AI is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

9.9% of Core AI shares are held by institutional investors. Comparatively, 35.8% of shares of all “Entertainment” companies are held by institutional investors. 6.8% of Core AI shares are held by company insiders. Comparatively, 23.8% of shares of all “Entertainment” companies 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.

Profitability

This table compares Core AI and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core AI	-50.81%	-142.15%	-61.62%
Core AI Competitors	9.17%	-61.36%	-3.16%

Analyst Ratings

This is a breakdown of current recommendations for Core AI and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core AI	1	0	0	0	1.00
Core AI Competitors	1778	4383	9415	243	2.51

As a group, “Entertainment” companies have a potential upside of 22.54%. Given Core AI’s peers stronger consensus rating and higher possible upside, analysts clearly believe Core AI has less favorable growth aspects than its peers.

Summary

Core AI peers beat Core AI on 12 of the 15 factors compared.

Core AI Company Profile

Siyata Mobile Inc. develops and provides cellular communications solutions for enterprise customers. It provides connected-vehicle devices and various accessories that are designed for professional fleets, such as trucks, vans, buses, ambulances, government cars, and others. The company also develops, markets, and sells rugged Push-To-Talk (PTT), mobile devices, cellular amplifiers, and various accessories. In addition, it offers 4G LTE devices, such as Uniden UV350 and Uniden CP250, in-vehicle communication devices that incorporate voice, push-to-talk over cellular, navigation, and data fleet management solutions. Further, the company provides cellular booster solutions, such as Uniden U60C 4G and U65C 4G to enhance connectivity; Uniden U70 FN for inside buildings, Uniden UM50 FN for inside vehicles, and the Uniden UM2M FN that can connect to its Uniden UV350 in vehicle communicator; Uniden Mobile Coverage Kit; Mission Critical Push-To-Talk device; and Vehicle Kit 7, a vehicle kit accessory that provides an in-vehicle solution. It serves cellular network operators and their dealers, as well as commercial vehicle technology distributors for fleets in Israel, Europe, Africa, the Middle East, Australia, New Zealand, Canada, and the United States. The company was incorporated in 1986 and is headquartered in Montreal, Canada.