Towerstream (OTCMKTS: TWER) and Ooma (NYSE:OOMA) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Earnings & Valuation
This table compares Towerstream and Ooma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Towerstream||$26.21 million||0.04||-$12.46 million||N/A||N/A|
|Ooma||$114.49 million||1.85||-$13.12 million||($0.69)||-16.16|
Institutional and Insider Ownership
73.4% of Ooma shares are held by institutional investors. 6.4% of Towerstream shares are held by company insiders. Comparatively, 48.2% of Ooma 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.
This table compares Towerstream and Ooma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for Towerstream and Ooma, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ooma has a consensus price target of $14.00, indicating a potential upside of 25.56%. Given Ooma’s higher possible upside, analysts clearly believe Ooma is more favorable than Towerstream.
Risk & Volatility
Towerstream has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500. Comparatively, Ooma has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
Ooma beats Towerstream on 9 of the 11 factors compared between the two stocks.
Towerstream Corporation is a provider of fixed wireless services to businesses in over 10 urban markets across the United States. The Company operates through Fixed Wireless Services (Fixed Wireless) segment. Its fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. Towerstream installs equipment on the rooftops of the buildings in which the Fixed Wireless segment customers operate and refer to these as Customer Locations. This equipment includes receivers and antennas, and a wireless connection is established between the Customer Location to one or more of its points of presence (PoPs). It provides fixed wireless broadband services to commercial customers and delivers access over a Wireless network transmitting over both regulated and unregulated radio spectrum. It provides services to business customers in various locations, including New York City, Boston, Chicago and Houston.
Ooma, Inc. provides communications solutions and other connected services to small business, home, and mobile users in the United States and Canadian markets. The company's Ooma Office, a multi-user communications system comprise an on-premise appliance and Ooma Linx end-point device that wirelessly connects regular desktop telephones and fax machines to the user's high-speed Internet connection; and Ooma Office Mobile HD app, which allows users to make, receive, and transfer phone calls. Its Ooma Telo, a home communications solution includes Ooma Premier Service, a suite of advanced calling features that have been designed to enhance the capabilities of Ooma Telo on a monthly or annual subscription basis; and Ooma Mobile HD app, which 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. In addition, the company offers Ooma Telo Air, a wireless device that connects to the Internet using the home's Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from phone in the home; Ooma handset, a Cordless handset; Wireless + bluetooth adapter, which allows users to install the Ooma Telo device anywhere in the home within range of their wireless network; and Safety phone, a wireless hands-free speakerphone that can be worn as a pendant. Further, it provides Ooma Home, a do-it-yourself home security solution; and Talkatone, a mobile app. The company offers its products through direct sales, retailers, and online, as well as through distributors and reseller partnership channels. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.
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