Analyzing Fusemachines (FUSE) and Its Peers

Fusemachines (NASDAQ:FUSE) is one of 275 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 dividends, risk, valuation, profitability, earnings, institutional ownership and analyst recommendations.

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	-187.13%	-35.39%	-8.65%

Risk & Volatility

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

Institutional and Insider Ownership

46.8% of Fusemachines shares are held by institutional investors. Comparatively, 36.7% of shares of all “IT Services” companies are held by institutional investors. 31.8% of Fusemachines shares are held by company insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Fusemachines and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
Fusemachines Competitors	1919	5548	9270	328	2.47

As a group, “IT Services” companies have a potential upside of 6.20%. Given Fusemachines’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Fusemachines has less favorable growth aspects than its competitors.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Fusemachines	$7.71 million	-$930,000.00	-4.77
Fusemachines Competitors	$3.17 billion	$221.12 million	-48.25

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.