Aterian, Inc. (NASDAQ: ATER) is navigating a challenging landscape within the technology services sector, competing with over 260 public companies. An analysis of Aterian’s performance in comparison to its peers reveals noteworthy disparities across several financial metrics, including profitability, institutional ownership, and market expectations.
Volatility and Risk Assessment
Aterian has a beta of 0.39, indicating that its stock price is approximately 61% less volatile than the S&P 500 index. In contrast, its competitors demonstrate an even lower average volatility with a beta of -13.69, suggesting their stock prices are about 1,469% less volatile than the S&P 500. This lower volatility may signal a different risk profile among Aterian’s peers.
Profitability and Institutional Ownership
When examining profitability, Aterian reports net margins of -11.25%, return on equity of -35.75%, and return on assets of -20.06%. In comparison, the average margins for Aterian’s competitors show a stark difference; they have net margins of -269.08%, return on equity of -104.94%, and return on assets of -20.59%.
In terms of ownership, only 7.0% of Aterian’s shares are held by institutional investors, which is significantly below the 37.7% average seen across all companies in the technology services sector. Insider ownership at Aterian stands at 19.5%, slightly lower than the 21.1% average for its competitors. This disparity may suggest differing levels of confidence among large money managers and insiders regarding Aterian’s growth potential.
Revenue, Earnings, and Valuation
Aterian’s gross revenue is reported at $99.04 million, with a net loss of $11.86 million. Its price-to-earnings ratio is -1.03, which is notably higher than the average price-to-earnings ratio of -14.89 for its peers, indicating that Aterian is currently priced higher relative to its earnings compared to other companies in the industry.
The financial landscape reveals that Aterian’s competitors have significantly higher revenue and profits, with total earnings of $32.01 million. This raises questions about Aterian’s market positioning and profitability strategies moving forward.
Analyst Ratings and Future Outlook
According to recent recommendations compiled by MarketBeat.com, Aterian currently holds a consensus target price of $4.00, indicating a potential upside of approximately 164.90%. In contrast, the average upside for technology services companies as a whole is 19.79%. This suggests that analysts may have a more favorable outlook for Aterian compared to its industry peers, who collectively received 44 sell ratings, 62 hold ratings, and 22 buy ratings.
Company Profile
Founded in 2014 and headquartered in Summit, New Jersey, Aterian operates as a technology-enabled consumer products company. Its offerings include home and kitchen appliances, cooling devices, and health and beauty products, marketed under brand names such as Squatty Potty and hOmeLabs. Aterian primarily serves individual consumers through online retail channels, including major platforms like Amazon and Walmart, as well as its own websites. The company rebranded from Mohawk Group Holdings, Inc. to Aterian, Inc. in April 2021.
As Aterian continues to carve out its niche within the technology services sector, the comparisons to its competitors provide valuable insights into its standing and future potential in an ever-evolving market.
