Block, Inc. and Veritone, Inc. are two dynamic players in the software infrastructure industry, each carving out a unique space through innovation. While Block focuses on payment solutions and commerce ecosystems, Veritone leads in artificial intelligence-powered data analytics. Their shared commitment to technology-driven growth makes them compelling candidates for comparison. In this article, I will analyze both companies to help you identify the most promising investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between Block, Inc. and Veritone, Inc. by providing an overview of these two companies and their main differences.
Block, Inc. Overview
Block, Inc. develops tools that enable sellers to accept card payments, offering both hardware like card readers and software such as point-of-sale and payment processing solutions. The company also provides Cash App for money management and Weebly for website hosting. Operating primarily in the US and several international markets, Block holds a strong position in the Software – Infrastructure industry with a market cap of 40B and 12,000 employees.
Veritone, Inc. Overview
Veritone, Inc. specializes in artificial intelligence computing solutions through its aiWARE platform, which applies machine learning for data analysis and cognitive processing. The company also offers media advertising agency services to various sectors including government and entertainment. Based in Denver, Veritone operates mainly in the US and UK, with a market cap of 225M and a workforce of 469 employees in the Software – Infrastructure industry.
Key similarities and differences
Both companies operate in the Technology sector under the Software – Infrastructure industry but differ significantly in scale and focus. Block is larger with a 40B market cap and diverse payment and retail solutions, while Veritone is smaller with 225M market cap and centers on AI-driven data analytics and media services. Block targets merchants and consumers, whereas Veritone serves specialized verticals with AI technology and advertising support.
Income Statement Comparison
The table below compares the key income statement metrics for Block, Inc. and Veritone, Inc. for the fiscal year 2024, providing a snapshot of their financial performance.
| Metric | Block, Inc. (XYZ) | Veritone, Inc. (VERI) |
|---|---|---|
| Market Cap | 40B | 225M |
| Revenue | 24.1B | 93M |
| EBITDA | 2.1B | -59M |
| EBIT | 1.7B | -88M |
| Net Income | 2.9B | -37M |
| EPS | 4.7 | -0.98 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Block, Inc.
Block, Inc. demonstrated strong revenue growth from 2020 to 2024, reaching $24.1B in 2024, with net income improving significantly to $2.9B. Gross margin remained favorable at 36.85%, while net margin rose to 12.01%, reflecting improved profitability. The 2024 year showed a robust 10% revenue increase alongside a dramatic net margin growth, indicating operational strength despite rising expenses.
Veritone, Inc.
Veritone, Inc. experienced fluctuating revenue, peaking near $150M in 2022 before declining to $92.6M in 2024. Net income remained negative, though losses narrowed to -$37.4M in 2024. Gross margin stayed healthy at 70.58%, but EBIT and net margins were unfavorable, below -95% and -40%, respectively. The recent year marked a revenue decline with some margin improvements and reduced operating expenses relative to revenue.
Which one has the stronger fundamentals?
Block, Inc. shows stronger fundamentals with sustained revenue and net income growth, favorable gross and net margins, and improved profitability in 2024. Veritone, Inc. maintains a solid gross margin but struggles with persistent net losses and negative EBIT margins despite some recent margin progress. Overall, Block’s income statement metrics indicate more consistent operational and financial health.
Financial Ratios Comparison
The table below presents key financial ratios for Block, Inc. (XYZ) and Veritone, Inc. (VERI) based on their latest fiscal year 2024 data, facilitating a direct comparison.
| Ratios | Block, Inc. (XYZ) | Veritone, Inc. (VERI) |
|---|---|---|
| ROE | 13.62% | -277.91% |
| ROIC | 3.03% | -58.27% |
| P/E | 18.10 | -3.34 |
| P/B | 2.47 | 9.27 |
| Current Ratio | 2.33 | 0.97 |
| Quick Ratio | 2.31 | 0.97 |
| D/E | 0.37 | 8.91 |
| Debt-to-Assets | 21.53% | 60.54% |
| Interest Coverage | 95.93 | -7.31 |
| Asset Turnover | 0.66 | 0.47 |
| Fixed Asset Turnover | 45.14 | 8.51 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
Block, Inc.
Block, Inc. shows a mixed financial profile with half of its key ratios rated favorable, including a strong current ratio of 2.33 and low debt-to-assets at 21.53%. However, its return on invested capital (3.03%) and weighted average cost of capital (14.27%) are unfavorable, indicating challenges in capital efficiency. The company does not pay dividends, likely prioritizing reinvestment and growth.
Veritone, Inc.
Veritone, Inc. presents a weak ratio set, with nearly 79% unfavorable metrics such as negative net margin (-40.36%) and poor return on equity (-277.91%), signaling significant operational losses. Its current ratio is below 1.0, suggesting liquidity concerns. Like Block, Veritone pays no dividends, reflecting its negative earnings and possible focus on R&D and expansion.
Which one has the best ratios?
Block, Inc. holds a more balanced and slightly favorable ratio profile compared to Veritone, Inc., whose ratios are predominantly unfavorable and indicate financial distress. Block’s stronger liquidity and manageable debt contrast with Veritone’s high leverage and negative profitability, positioning Block with the comparatively better financial health based on the provided ratios.
Strategic Positioning
This section compares the strategic positioning of Block, Inc. and Veritone, Inc., including market position, key segments, and exposure to technological disruption:
Block, Inc.
- Large market cap of 40B with strong NYSE presence; faces competitive pressure in payment infrastructure
- Diversified revenue streams: software, cryptocurrency assets, hardware, and transaction services
- Operates in payment technologies and cryptocurrency but must adapt to rapid fintech and crypto shifts
Veritone, Inc.
- Small market cap of 225M traded on NASDAQ; competes in AI software solutions market
- Concentrated on AI platforms, managed services, licenses, and advertising segments
- AI-driven platform exposed to evolving machine learning and cognitive AI technology changes
Block, Inc. vs Veritone, Inc. Positioning
Block shows a diversified business model across payments, software, and crypto assets, offering multiple revenue drivers. Veritone’s approach is more concentrated on AI and media services, with narrower market exposure and smaller scale.
Which has the best competitive advantage?
Both companies are currently shedding value, but Block’s improving ROIC trend suggests a less unfavorable moat, whereas Veritone’s declining ROIC and very unfavorable moat indicate weaker competitive advantage.
Stock Comparison
The stock price trajectories of Block, Inc. (XYZ) and Veritone, Inc. (VERI) over the past 12 months reveal contrasting dynamics, with Block, Inc. experiencing a significant decline and Veritone, Inc. showing strong gains before a recent downturn.
Trend Analysis
Block, Inc. (XYZ) recorded a bearish trend with a -16.43% price change over the past year, accompanied by high volatility (std deviation 10.43) and decelerating downward momentum. The recent 2.5-month period confirms ongoing decline with a -13.16% loss.
Veritone, Inc. (VERI) showed a bullish trend with a 147.22% gain in the last 12 months, low volatility (std deviation 1.26), but a deceleration in growth. However, recent weeks reflect a sharp -28.91% drop, indicating short-term weakness.
Comparing both, Veritone, Inc. delivered the highest market performance over the year despite recent pullback, while Block, Inc. saw consistent losses with a bearish trajectory.
Target Prices
Analyst consensus target prices provide a clear outlook on these technology infrastructure companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Block, Inc. | 100 | 65 | 84.91 |
| Veritone, Inc. | 10 | 9 | 9.5 |
For Block, Inc., the consensus target of 84.91 suggests a potential upside from the current price of 65.95, indicating moderate growth expectations. Veritone, Inc.’s consensus target of 9.5 is substantially higher than its current 4.45 price, signaling strong analyst optimism despite its smaller market cap.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Block, Inc. (XYZ) and Veritone, Inc. (VERI):
Rating Comparison
Block, Inc. Rating
- Rating: B+, evaluated as Very Favorable
- Discounted Cash Flow Score: 3, considered Moderate
- ROE Score: 4, rated Favorable
- ROA Score: 4, rated Favorable
- Debt To Equity Score: 2, rated Moderate
- Overall Score: 3, rated Moderate
Veritone, Inc. Rating
- Rating: C, evaluated as Very Favorable
- Discounted Cash Flow Score: 5, considered Very Favorable
- ROE Score: 1, rated Very Unfavorable
- ROA Score: 1, rated Very Unfavorable
- Debt To Equity Score: 1, rated Very Unfavorable
- Overall Score: 2, rated Moderate
Which one is the best rated?
Based strictly on the data, Block, Inc. holds higher ratings in ROE, ROA, debt-to-equity, and overall score, while Veritone, Inc. excels only in discounted cash flow score. Overall, Block, Inc. is better rated by analysts.
Scores Comparison
Here is a comparison of the financial health scores for Block, Inc. and Veritone, Inc.:
Block, Inc. Scores
- Altman Z-Score: 2.70, in the grey zone indicating moderate bankruptcy risk
- Piotroski Score: 6, average financial strength
Veritone, Inc. Scores
- Altman Z-Score: -0.07, in the distress zone signaling high bankruptcy risk
- Piotroski Score: 3, very weak financial strength
Which company has the best scores?
Block, Inc. outperforms Veritone, Inc. on both scores, showing moderate financial stability versus Veritone’s high bankruptcy risk and weak financial strength. This indicates Block is in a comparatively stronger financial position based on these metrics.
Grades Comparison
The following grades summarize recent analyst ratings from established grading companies for both Block, Inc. and Veritone, Inc.:
Block, Inc. Grades
This table shows recent grades assigned by reputable financial institutions for Block, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Underweight | 2026-01-14 |
| Keefe, Bruyette & Woods | Maintain | Outperform | 2026-01-02 |
| Needham | Maintain | Buy | 2025-11-24 |
| B of A Securities | Maintain | Buy | 2025-11-21 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-21 |
| BTIG | Maintain | Buy | 2025-11-20 |
| RBC Capital | Maintain | Outperform | 2025-11-20 |
| Stephens & Co. | Maintain | Overweight | 2025-11-20 |
| Mizuho | Maintain | Outperform | 2025-11-20 |
| BTIG | Maintain | Buy | 2025-11-14 |
Block, Inc.’s grades predominantly cluster around “Buy,” “Outperform,” and “Overweight,” with a single recent “Underweight” rating, indicating a generally positive but somewhat mixed outlook.
Veritone, Inc. Grades
Below are the recent grades given by recognized analysts for Veritone, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| D. Boral Capital | Maintain | Buy | 2025-12-09 |
| D. Boral Capital | Maintain | Buy | 2025-12-04 |
| Needham | Maintain | Buy | 2025-12-02 |
| D. Boral Capital | Maintain | Buy | 2025-12-02 |
| D. Boral Capital | Maintain | Buy | 2025-11-07 |
| D. Boral Capital | Maintain | Buy | 2025-10-28 |
| HC Wainwright & Co. | Maintain | Buy | 2025-10-20 |
| D. Boral Capital | Maintain | Buy | 2025-10-15 |
| D. Boral Capital | Maintain | Buy | 2025-09-24 |
| D. Boral Capital | Maintain | Buy | 2025-09-09 |
Veritone, Inc.’s ratings are uniformly “Buy,” reflecting a consistently bullish consensus from its analysts.
Which company has the best grades?
Veritone, Inc. has received uniformly positive “Buy” ratings, showing stronger consensus support compared to Block, Inc., whose ratings include some cautionary stances like “Underweight.” This difference may influence investor sentiment toward more confidence in Veritone’s outlook.
Strengths and Weaknesses
Below is a comparative table highlighting the key strengths and weaknesses of Block, Inc. (XYZ) and Veritone, Inc. (VERI) based on recent financial and operational data.
| Criterion | Block, Inc. (XYZ) | Veritone, Inc. (VERI) |
|---|---|---|
| Diversification | Strong product diversification: software, cryptocurrency assets, hardware, and transaction services. | Limited diversification focused on AI software, licensing, and managed services. |
| Profitability | Moderate profitability with 12.0% net margin; however, ROIC (3.03%) below WACC (14.27%) indicates value destruction. | Negative profitability: net margin -40.36%, ROIC -58.27%, and declining returns highlight financial distress. |
| Innovation | Growing ROIC trend (+13.7%) suggests improving operational efficiency and innovation capability. | Declining ROIC trend (-9.3%) reflects challenges in sustaining innovation and profitability. |
| Global presence | Strong, supported by diverse revenue streams and significant cryptocurrency and software business. | Smaller scale with concentrated AI and software services, less global footprint. |
| Market Share | Substantial market share in fintech and crypto-related sectors with revenues > $25B (2024). | Smaller market presence with total revenues under $0.12B, focused on niche AI applications. |
Key takeaway: Block, Inc. demonstrates stronger diversification, improving profitability trends, and a significant global footprint, despite current value destruction. Veritone, Inc. faces serious financial challenges with shrinking profitability and limited diversification, suggesting higher investment risk.
Risk Analysis
Below is a comparison table of key risks for Block, Inc. (XYZ) and Veritone, Inc. (VERI) based on the most recent 2024 data.
| Metric | Block, Inc. (XYZ) | Veritone, Inc. (VERI) |
|---|---|---|
| Market Risk | High beta (2.665), volatile price range ($44.27-$94.25) | High beta (2.052), wide price range ($1.22-$9.42) |
| Debt level | Low debt-to-equity ratio (0.37), favorable interest coverage (181.31) | Very high debt-to-equity ratio (8.91), negative interest coverage (-7.3) |
| Regulatory Risk | Moderate, operates in multiple countries with financial regulations | Moderate, AI industry subject to evolving data/privacy laws |
| Operational Risk | Medium, complex payment and software services | High, reliance on AI platform performance and client retention |
| Environmental Risk | Low, primarily software and hardware products | Low, AI software focus with limited physical footprint |
| Geopolitical Risk | Moderate, global presence in US, Canada, Europe, Japan, Australia | Moderate, US and UK operations potentially affected by trade/policy shifts |
Block, Inc. shows a balanced risk profile with strong debt management and favorable liquidity, though market volatility remains a concern due to its high beta. Veritone faces significant financial distress risks with high leverage and negative profitability metrics, increasing bankruptcy risk. Operational and market risks are the most impactful for Veritone, while Block’s main risk is market volatility. Investors should weigh Block’s relative stability against Veritone’s financial vulnerability.
Which Stock to Choose?
Block, Inc. (XYZ) shows a favorable income evolution with 10.06% revenue growth in 2024 and strong net margin of 12.01%. Its financial ratios are slightly favorable, featuring a solid current ratio of 2.33 and low debt levels. Profitability is moderate, with ROE at 13.62% and improving returns. The company carries manageable debt and benefits from a very favorable B+ rating.
Veritone, Inc. (VERI) experienced a mixed income evolution, with a 7.35% revenue decline in 2024 but favorable growth overall. Its financial ratios are very unfavorable, marked by a weak current ratio of 0.97 and high leverage. Profitability is deeply negative, with a net margin of -40.36% and declining returns. The firm has significant debt and a very unfavorable C rating.
Investors seeking stability and financial health might find Block, Inc. more favorable due to its positive income trends and stronger financial ratios, while those with a tolerance for risk and focus on potential turnaround growth could view Veritone, Inc.’s improving income growth and recent bullish price trend as suggestive but requiring caution.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Block, Inc. and Veritone, Inc. to enhance your investment decisions:
