Informatica Inc. (INFA) and Veritone, Inc. (VERI) are two prominent players in the software infrastructure sector, both leveraging artificial intelligence to transform data management and analytics. While Informatica focuses on enterprise-scale data integration and governance, Veritone specializes in AI-driven cognitive solutions across multiple industries. This comparison will help investors identify which company offers the most compelling growth and innovation potential in today’s competitive AI landscape. Let’s explore which stock deserves a place in your portfolio.
Table of contents
Companies Overview
I will begin the comparison between Informatica and Veritone by providing an overview of these two companies and their main differences.
Informatica Overview
Informatica Inc. develops an AI-powered platform designed to connect, manage, and unify data across multi-cloud and hybrid systems at an enterprise scale in the US. Its suite includes data integration, API management, data quality, master data management, and governance products, aiming to deliver accurate and consistent data for analytics, compliance, and operational efficiency. Founded in 1993, Informatica is headquartered in Redwood City, California, with a market cap of 7.5B USD.
Veritone Overview
Veritone, Inc. provides AI computing solutions through its aiWARE platform, which applies machine learning and cognitive processes to extract insights from structured and unstructured data. Serving diverse verticals such as media, government, and legal, Veritone also offers media advertising agency services. Founded in 2014 and based in Denver, Colorado, Veritone has a market cap of approximately 225M USD and employs around 469 people.
Key similarities and differences
Both Informatica and Veritone operate in the software infrastructure industry, focusing on artificial intelligence applications for data management and insights. Informatica targets large-scale enterprise data integration and governance, while Veritone specializes in AI-driven cognitive solutions and media services. Informatica is significantly larger by market cap and employee count, reflecting its broader enterprise footprint compared to Veritone’s more niche AI platform and specialized service offerings.
Income Statement Comparison
The table below presents a side-by-side comparison of the key income statement metrics for Informatica Inc. and Veritone, Inc. for the fiscal year 2024.
| Metric | Informatica Inc. (INFA) | Veritone, Inc. (VERI) |
|---|---|---|
| Market Cap | 7.54B | 225M |
| Revenue | 1.64B | 93M |
| EBITDA | 339M | -59M |
| EBIT | 199M | -88M |
| Net Income | 9.93M | -37M |
| EPS | 0.033 | -0.98 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Informatica Inc.
Informatica Inc. demonstrated consistent revenue growth from 2020 to 2024, reaching $1.64B in 2024, a 23.95% increase overall. Net income, initially negative, turned positive in 2024 at $9.9M, with net margin improving to 0.61%. The gross margin remained strong at 80.11%, while EBIT margin improved significantly to 12.15%, indicating enhanced operational efficiency in the latest year.
Veritone, Inc.
Veritone, Inc. saw revenue growth of 60.53% over the 2020-2024 period, peaking at $92.6M in 2024, despite a 7.35% decline in the last year. Net income remained negative but improved from -$64.7M in 2020 to -$37.4M in 2024, with net margin at -40.36%. Gross margin stayed favorable at 70.58%, but EBIT margin remained deeply negative at -95.13%, reflecting ongoing operational challenges.
Which one has the stronger fundamentals?
Informatica shows stronger fundamentals with sustained revenue growth, positive net income in 2024, and improving profitability margins, including EBIT. Veritone’s revenue growth is notable but hampered by persistent net losses and unfavorable EBIT margin. Informatica’s higher gross margin and margin improvements suggest better operational control and profitability compared to Veritone’s wider losses and margin pressures.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Informatica Inc. (INFA) and Veritone, Inc. (VERI) based on their most recent fiscal year 2024 data.
| Ratios | Informatica Inc. (INFA) | Veritone, Inc. (VERI) |
|---|---|---|
| ROE | 0.43% | -277.91% |
| ROIC | 0.56% | -58.27% |
| P/E | 788 | -3.34 |
| P/B | 3.39 | 9.27 |
| Current Ratio | 1.82 | 0.97 |
| Quick Ratio | 1.82 | 0.97 |
| D/E (Debt-to-Equity) | 0.81 | 8.91 |
| Debt-to-Assets | 35.2% | 60.5% |
| Interest Coverage | 0.87 | -7.31 |
| Asset Turnover | 0.31 | 0.47 |
| Fixed Asset Turnover | 8.75 | 8.51 |
| Payout ratio | 0.12% | 0 |
| Dividend yield | 0.00015% | 0 |
Interpretation of the Ratios
Informatica Inc.
Informatica presents a mixed ratio profile with limited recent data on profitability and leverage. Its EV to sales ratio above 5 suggests a premium valuation, while returns on assets and equity remain near zero or slightly negative, indicating weak profitability. The company does not pay dividends, reflecting a reinvestment strategy or growth focus, supported by substantial R&D spending and no share buyback programs disclosed.
Veritone, Inc.
Veritone’s financial ratios signal significant weaknesses, including negative net margin (-40.36%) and ROE (-277.91%), coupled with a high debt-to-equity ratio (8.91) and low current ratio (0.97). Despite a favorable PE ratio, the overall assessment is very unfavorable due to profitability and solvency issues. Veritone pays no dividends, likely prioritizing reinvestment amid losses and high operational costs, with no dividend yield or buybacks.
Which one has the best ratios?
Comparing both companies, Informatica’s ratios, while imperfect, are relatively stronger and more stable, with modest returns and a premium valuation. In contrast, Veritone exhibits predominantly unfavorable ratios reflecting operational and financial distress. Therefore, Informatica holds a more favorable ratio profile than Veritone based on the available data.
Strategic Positioning
This section compares the strategic positioning of Informatica Inc. and Veritone, Inc., including market position, key segments, and exposure to technological disruption:
Informatica Inc.
- Market leader in AI-powered data management with a $7.5B market cap and moderate competitive pressure.
- Focuses on enterprise data integration, API management, data quality, and governance with subscription-centric revenue.
- Positioned around AI-powered multi-cloud and hybrid data platforms, facing moderate risk from tech shifts.
Veritone, Inc.
- Smaller AI computing solutions provider with $225M market cap, facing higher competitive pressure.
- Serves media, government, legal, and energy sectors with AI platform, advertising, and managed services.
- Uses AI operating system for diverse cognitive tasks, exposed to rapid AI innovation and media tech disruption.
Informatica Inc. vs Veritone, Inc. Positioning
Informatica operates with a diversified, subscription-driven model targeting enterprise data management at scale, while Veritone focuses on niche AI applications and advertising services, resulting in a more concentrated business approach with different sector exposures and scale advantages.
Which has the best competitive advantage?
Veritone shows a very unfavorable MOAT with declining profitability and value destruction, whereas Informatica lacks MOAT data. Based on available MOAT evaluation, neither company demonstrates a strong competitive advantage currently.
Stock Comparison
The stock price movements of Informatica Inc. and Veritone, Inc. over the past 12 months reveal contrasting trends, with Informatica experiencing a significant decline while Veritone shows strong gains despite recent volatility.
Trend Analysis
Informatica Inc. shows a bearish trend over the past year with a -12.68% price change and accelerating downward momentum, fluctuating between 16.67 and 38.48, with elevated volatility (std dev 4.46).
Veritone, Inc. exhibits a bullish trend over the same period, gaining 147.22% though with decelerating gains; recent weeks show a sharp decline of -28.91% and moderate volatility (std dev 0.65).
Comparing both, Veritone delivered the highest market performance over the analyzed year despite recent weakness, while Informatica faced steady losses and accelerating decline.
Target Prices
The current analyst consensus suggests clear target prices for both Informatica Inc. and Veritone, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Informatica Inc. | 27 | 27 | 27 |
| Veritone, Inc. | 10 | 9 | 9.5 |
Analysts expect Informatica’s stock to reach $27, slightly above its current price of $24.79, indicating moderate upside potential. Veritone’s consensus target is $9.5, more than double its current price of $4.45, suggesting significant growth expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Informatica Inc. and Veritone, Inc.:
Rating Comparison
INFA Rating
- No rating data available.
- Discounted Cash Flow Score: N/A.
- ROE Score: N/A.
- ROA Score: N/A.
- Debt To Equity Score: N/A.
- Overall Score: N/A.
VERI Rating
- Rated C, classified as Very Favorable.
- Score 5, indicating a Very Favorable valuation based on future cash flows.
- Score 1, considered Very Unfavorable for profit generation on equity.
- Score 1, Very Unfavorable for asset utilization efficiency.
- Score 1, Very Unfavorable due to high financial risk.
- Score 2, rated Moderate overall financial standing.
Which one is the best rated?
Based strictly on the provided data, Veritone is the only company with an available rating and scores. It holds a Very Favorable rating of C, with a high DCF score but very low scores on profitability and financial risk metrics. Informatica has no rating data to compare.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Informatica Inc. and Veritone, Inc.:
INFA Scores
- Altman Z-Score: 1.94, indicating a grey zone with moderate bankruptcy risk.
- Piotroski Score: 6, reflecting average financial strength.
VERI Scores
- Altman Z-Score: -0.07, indicating a distress zone with high bankruptcy risk.
- Piotroski Score: 3, reflecting very weak financial strength.
Which company has the best scores?
Informatica Inc. has higher scores in both Altman Z-Score and Piotroski Score compared to Veritone, Inc., indicating relatively better financial stability and strength based on the provided data.
Grades Comparison
Here is a comparison of the recent grades and ratings assigned to Informatica Inc. and Veritone, Inc.:
Informatica Inc. Grades
The following table shows recent grade updates from established grading firms for Informatica Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Guggenheim | Downgrade | Neutral | 2025-08-07 |
| UBS | Maintain | Neutral | 2025-08-07 |
| Baird | Maintain | Neutral | 2025-05-28 |
| JP Morgan | Downgrade | Neutral | 2025-05-28 |
| RBC Capital | Maintain | Sector Perform | 2025-05-28 |
| Wolfe Research | Downgrade | Peer Perform | 2025-05-28 |
| Wells Fargo | Maintain | Equal Weight | 2025-05-28 |
| Truist Securities | Downgrade | Hold | 2025-05-28 |
| RBC Capital | Maintain | Sector Perform | 2025-05-27 |
| UBS | Maintain | Neutral | 2025-05-16 |
The overall trend for Informatica Inc. shows a shift toward neutral and hold ratings, reflecting a cautious stance by analysts.
Veritone, Inc. Grades
The table below summarizes recent grades from D. Boral Capital, Needham, and HC Wainwright & Co. 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. displays consistent buy ratings maintained over several months, indicating analyst confidence.
Which company has the best grades?
Veritone, Inc. has received predominantly buy ratings, while Informatica Inc. shows mostly neutral and hold grades. This difference suggests Veritone is viewed more favorably by analysts, which may influence investor sentiment accordingly.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for Informatica Inc. (INFA) and Veritone, Inc. (VERI) based on the most recent available data.
| Criterion | Informatica Inc. (INFA) | Veritone, Inc. (VERI) |
|---|---|---|
| Diversification | Strong subscription and professional services mix with over $1.1B in subscription revenue (2024) and $78M in professional services | Revenue concentrated in AI software products and managed services, totaling about $61M in software and $32M in managed services (2024) |
| Profitability | Data not available for profitability analysis | Negative profitability with -40.36% net margin and -277.91% ROE, indicating sustained losses |
| Innovation | Established player in data management with growing cloud and subscription support | Innovation present but with declining ROIC (-58.27%) and unfavorable financial health, suggesting challenges in monetizing innovation |
| Global presence | Well-established global footprint in enterprise data solutions (implied by scale) | Limited data on global reach, likely smaller scale and more niche market presence |
| Market Share | Significant market share in data integration and management sectors (implied by large subscription base) | Smaller market share with revenues under $100M, facing value destruction and declining profitability |
Key takeaways: Informatica shows strong revenue diversification and a solid subscription business, though detailed profitability data is missing. Veritone struggles with profitability and value creation, reflected in very unfavorable financial ratios and declining returns, posing higher investment risk.
Risk Analysis
The following table summarizes key risk factors for Informatica Inc. (INFA) and Veritone, Inc. (VERI) based on the most recent data from 2024 and 2026 evaluations:
| Metric | Informatica Inc. (INFA) | Veritone, Inc. (VERI) |
|---|---|---|
| Market Risk | Moderate (Beta 1.14) | High (Beta 2.05, volatile price) |
| Debt level | Data unavailable | Very high (Debt-to-Equity 8.91, Debt-to-Assets 60.54%) |
| Regulatory Risk | Moderate (Data management, compliance focus) | Moderate (AI and data usage regulations) |
| Operational Risk | Medium (Large enterprise scale, integration complexity) | High (Smaller scale, tech reliance, negative margins) |
| Environmental Risk | Low to moderate (Technology sector) | Low to moderate (Technology sector) |
| Geopolitical Risk | Low (US-based, global cloud clients) | Moderate (US and UK presence, global AI compliance) |
Informatica shows moderate market risk and operational complexity with limited debt data, but maintains a relatively stable risk profile. Veritone faces the most impactful risks: very high leverage, severe financial distress (Altman Z-score in distress zone), and significant operational and market volatility. Its negative profitability and weak financial ratios highlight elevated risk for investors. Caution and thorough risk management are advised when considering Veritone.
Which Stock to Choose?
Informatica Inc. (INFA) shows a generally favorable income evolution with strong gross and EBIT margins and significant growth in net margin and EPS over the 2020-2024 period. Its financial ratios reveal a moderate debt level with a current ratio above 1.8, though profitability ratios like ROE and ROIC remain low. INFA’s Altman Z-Score places it in the grey zone, indicating moderate financial risk.
Veritone, Inc. (VERI) presents a mixed income profile with a favorable overall income statement but struggles with negative net margin and EBIT margin. Its financial ratios are mostly very unfavorable, including a high debt-to-equity ratio and poor profitability metrics. VERI’s value creation assessment is very unfavorable, showing declining ROIC below its cost of capital, with scores indicating financial distress and weak operational strength.
Investors prioritizing financial stability and sustained profitability might find INFA’s profile more favorable given its stronger income statement and moderate financial risk. Conversely, risk-tolerant investors focusing on potential high growth and turnaround opportunities may see VERI’s recent bullish price trend and partial income improvements as signals worth monitoring, despite its current challenges.
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 Informatica Inc. and Veritone, Inc. to enhance your investment decisions:
