Financial Survey: C3.ai (NYSE:AI) and mCloud Technologies (OTCMKTS:MCLDF)

mCloud Technologies (OTCMKTS:MCLDF) and C3.ai (NYSE:AI) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Profitability

This table compares mCloud Technologies and C3.ai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
mCloud Technologies	N/A	N/A	N/A
C3.ai	-85.47%	-31.28%	-26.30%

Risk and Volatility

mCloud Technologies has a beta of 87.64, meaning that its share price is 8,664% more volatile than the S&P 500. Comparatively, C3.ai has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Institutional and Insider Ownership

39.0% of C3.ai shares are owned by institutional investors. 3.6% of mCloud Technologies shares are owned by insiders. Comparatively, 33.5% of C3.ai shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares mCloud Technologies and C3.ai”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
mCloud Technologies	$20.42 million	0.00	-$35.37 million	N/A	N/A
C3.ai	$310.58 million	10.63	-$279.70 million	($2.28)	-11.40

mCloud Technologies has higher earnings, but lower revenue than C3.ai.

Analyst Recommendations

This is a breakdown of current ratings for mCloud Technologies and C3.ai, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
mCloud Technologies	0	0	0	0	0.00
C3.ai	2	5	4	1	2.33

C3.ai has a consensus target price of $27.70, suggesting a potential upside of 6.58%. Given C3.ai’s stronger consensus rating and higher probable upside, analysts clearly believe C3.ai is more favorable than mCloud Technologies.

Summary

C3.ai beats mCloud Technologies on 7 of the 12 factors compared between the two stocks.

About mCloud Technologies

mCloud Technologies Corp. provides asset management platform solutions combining IoT, artificial intelligence (AI), and cloud in North America, the Asia-Pacific, Europe, the Middle East, Africa, Australia, and China. Its AI-powered AssetCare platform offers asset management solutions, such as Connected Buildings, an AI and analytics solution to automate and remotely manage commercial buildings; Connected Workers, a cloud software to assist workers in the field to stay connected to experts remotely, facilitate repairs, and provide workers with an AI-powered digital assistant; Connected Energy for the inspection of wind turbine blades using AI-powered computer vision and the deployment of analytics to maximize wind farm energy production yield and availability; Connected Industry, to process assets and control endpoint monitoring, equipment health, and asset inventory management, as well as for the management of change across distributed teams; and Connected Health, which includes remote health monitoring and connectivity to caregivers using mobile apps and wireless sensors. The company was formerly known as Universal mCloud Corp. and changed its name to mCloud Technologies Corp. in October 2019. mCloud Technologies Corp. was founded in 2017 and is based in Vancouver, Canada.

About C3.ai

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.