Financial Comparison: AAP (OTCMKTS:AAPJ) vs. Ooma (NYSE:OOMA)

AAP (OTCMKTS:AAPJ) and Ooma (NYSE:OOMA) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Profitability

This table compares AAP and Ooma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AAP	N/A	N/A	N/A
Ooma	-1.89%	2.72%	1.54%

Earnings and Valuation

This table compares AAP and Ooma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAP	N/A	N/A	N/A	N/A	N/A
Ooma	$256.85 million	1.28	-$6.90 million	($0.19)	-62.76

AAP has higher earnings, but lower revenue than Ooma.

Risk and Volatility

AAP has a beta of 3.36, meaning that its stock price is 236% more volatile than the S&P 500. Comparatively, Ooma has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for AAP and Ooma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAP	0	0	0	0	0.00
Ooma	0	1	4	0	2.80

Ooma has a consensus target price of $17.63, suggesting a potential upside of 47.80%. Given Ooma’s stronger consensus rating and higher possible upside, analysts clearly believe Ooma is more favorable than AAP.

Institutional and Insider Ownership

80.4% of Ooma shares are owned by institutional investors. 4.5% of AAP shares are owned by company insiders. Comparatively, 9.9% of Ooma shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Ooma beats AAP on 8 of the 10 factors compared between the two stocks.

About AAP

AAP, Inc. engages in the debt collection, infrastructure construction, business, and real estate development business. The company was formerly known as Borneo Energy USA, Inc. and changed its name to AAP, Inc. in September 2011. AAP, Inc. was founded in 1993 and is based in Cheyenne, Wyoming.

About Ooma

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Connect, which delivers fixed wireless internet connectivity; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution. It also provides Ooma AirDial, a plain old telephone service; PureVoice HD, a residential phone services; Ooma basic that provides unlimited personal calling within the United States; and Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis. In addition, the company offers Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; and Ooma Telo LTE, which combines the Ooma Telo base station with the Ooma LTE Adapter and battery back-up. Further, it provides Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; 2600Hz provides business communication applications; Talkatone mobile app; and OnSIP, an UCaaS solutions. The company offers its products through direct sales, distributors, retailers, and resellers, as well as online and sale representatives. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.