Ooma (NYSE:OOMA) and 8X8 (NASDAQ:EGHT) are two small-cap computer and technology companies that are often compared in terms of investment potential. In this analysis, we will examine various factors to determine which company may be a better investment option.
Profitability:
When comparing profitability, Ooma and 8X8 exhibit different strengths. Ooma has higher net margins, return on equity, and return on assets compared to 8X8.
Analyst Ratings:
According to MarketBeat, recent ratings and recommendations for Ooma and 8X8 indicate that Ooma has performed better in this aspect.
Earnings & Valuation:
In terms of revenue and earnings per share, Ooma has higher earnings but lower revenue than 8X8. However, Ooma is currently trading at a lower price-to-earnings ratio than 8X8, suggesting that it may be a more affordable stock.
Insider & Institutional Ownership:
Institutional investors own 80.4% of Ooma shares, while 94.0% of 8X8 shares are owned by institutional investors. Additionally, 9.8% of Ooma shares are owned by insiders, compared to 1.1% for 8X8. These figures indicate a stronger institutional ownership for 8X8.
Risk & Volatility:
Ooma has a beta of 0.92, making its stock price 8% less volatile than the S&P 500. On the other hand, 8X8 has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.
In summary, Ooma outperforms 8X8 in eight out of the fourteen factors compared between the two stocks. However, investors should consider all the available information and conduct further research before making any investment decisions.
About Ooma:
Ooma, Inc. is a technology company based in Sunnyvale, California. It provides communications services and related technologies for businesses and consumers in the United States and Canada. Ooma offers various products and services, including cloud-based multi-user communications systems, fixed wireless internet connectivity, unified-communications-as-a-service solutions, and residential phone services.