Friday, July 26, 2019

Financial Review: Ooma (NYSE:OOMA) vs. Digerati Technologies (NYSE:DTGI) - Trent Times

Financial Review: Ooma (NYSE:OOMA) vs. Digerati Technologies (NYSE:DTGI) - Trent Times


Financial Review: Ooma (NYSE:OOMA) vs. Digerati Technologies (NYSE:DTGI) - Trent Times

Posted: 26 Jul 2019 03:33 AM PDT

Ooma (NYSE:OOMA) and Digerati Technologies (OTCMKTS:DTGI) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Valuation & Earnings

This table compares Ooma and Digerati Technologies' top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ooma $129.23 million 1.90 -$14.57 million ($0.69) -17.19
Digerati Technologies $2.00 million 1.85 -$3.16 million N/A N/A

Digerati Technologies has lower revenue, but higher earnings than Ooma.

Institutional and Insider Ownership

75.7% of Ooma shares are held by institutional investors. 10.2% of Ooma shares are held by company insiders. Comparatively, 8.0% of Digerati Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Ooma has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Digerati Technologies has a beta of 2.41, indicating that its share price is 141% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ooma and Digerati Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ooma 0 1 4 0 2.80
Digerati Technologies 0 0 0 0 N/A

Ooma currently has a consensus price target of $17.88, indicating a potential upside of 50.72%. Given Ooma's higher probable upside, research analysts clearly believe Ooma is more favorable than Digerati Technologies.

Profitability

This table compares Ooma and Digerati Technologies' net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ooma -11.75% -42.73% -18.63%
Digerati Technologies -69.78% N/A -96.61%

Summary

Ooma beats Digerati Technologies on 8 of the 11 factors compared between the two stocks.

Ooma Company Profile

Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company's smart cloud-based SaaS platform serves as a communications hub, which offers cloud-based communications solutions, smart security, and other connected services. Its business and residential solutions deliver PureVoice high-definition voice quality, advanced functionality, and integration with mobile devices; and platform helps to create smart workplace and homes by offering communications, monitoring, security, automation, productivity, and networking infrastructure applications. The company's products and services include Ooma Office, a multi-user communications system that provides everything needed to manage communications in and out of the office for small businesses; Ooma Office Mobile HD app to make, receive, and transfer phone calls; and Ooma Enterprise, an unified-communications-as-a-service. It also provides Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a solution that connects to the Internet wirelessly using the home's Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from any phone in the home; and Ooma HD3 cordless handset. In addition, the company offers Ooma Premier Service, a suite of advanced calling features to enhance the capabilities of Ooma Telo; and Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings with iOS or Android device over a Wi-Fi or cellular data connection. Further, it provides Ooma Smart Security, a security and monitoring platform; Ooma Smart Cam, an indoor/outdoor high-definition video security camera; and Talkatone mobile app. The company offers its products through direct sales, retailers, distributors, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

Digerati Technologies Company Profile

Digerati Technologies, Inc. is a holding company, which through its subsidiaries, engages in the provision of cloud telephony services. Its services include fully hosted IP/PBX, mobile applications, voice over Internet protocol (VoIP) transport, SIP trunking, and customized VoIP services. It also offers oilfield services. The company was founded by Arthur L. Smith on December 17, 1993 and is headquartered in San Antonio, TX.

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