Contrasting Sangoma Technologies (NASDAQ:SANG) and authID (NASDAQ:AUID)

Sangoma Technologies (NASDAQ:SANG) and authID (NASDAQ:AUID) 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 dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings for Sangoma Technologies and authID, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sangoma Technologies	1	0	2	1	2.75
authID	0	0	0	0	0.00

Sangoma Technologies presently has a consensus target price of $11.00, indicating a potential upside of 142.02%. Given Sangoma Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Sangoma Technologies is more favorable than authID.

Profitability

This table compares Sangoma Technologies and authID’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sangoma Technologies	-2.53%	-1.80%	-1.33%
authID	-728.89%	-180.17%	-145.07%

Insider and Institutional Ownership

39.7% of Sangoma Technologies shares are owned by institutional investors. Comparatively, 8.8% of authID shares are owned by institutional investors. 14.0% of Sangoma Technologies shares are owned by company insiders. Comparatively, 7.2% of authID shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Sangoma Technologies and authID”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sangoma Technologies	$236.69 million	0.64	-$5.01 million	($0.16)	-28.41
authID	$1.83 million	12.75	-$14.28 million	($1.60)	-1.09

Sangoma Technologies has higher revenue and earnings than authID. Sangoma Technologies is trading at a lower price-to-earnings ratio than authID, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Sangoma Technologies has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, authID has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Summary

Sangoma Technologies beats authID on 12 of the 15 factors compared between the two stocks.

About Sangoma Technologies

Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. The company offers Switchvox, a voice over internet protocol phone system; Switchvox Cloud, a unified communications solution, as well as provides cloud communication solutions. It offers SIP Trunking, a telephone service for one or multiple locations; PBXact Cloud, a centralized internet based solution; Asterisk and FreePBX, an open source IP PBX software; and FAXStation, a fax-over-IP solution. In addition, the company provides desk phone, DECT phones, and headset related products. Further, it offers VoIP gateways, session border controllers, telephony card, and managed service provider services. Sangoma Technologies Corporation was founded in 1984 and is headquartered in Markham, Canada.

About authID

authID Inc. provides secure, biometric, identity verification, and strong passwordless and biometric authentication for consumer and workforce applications worldwide. The company offers solutions through its Verified platform to enable their users to easily verify and authenticate their identity through a mobile device or desktop. It provides Biometric Identity Verification, which establishes the trusted identity of users based on a variety of ground truth sources, including chip-based electronic machine-readable travel documents, national IDs, and driver's licenses; Human Factor Authentication that delivers trusted FIDO2 strong authentication for device-based passwordless login and transaction authentication that is tied to a trusted identity; Cloud-Based Biometric Multi-Factor Authentication, which provides any bank, enterprise, or government department a secure and convenient application for identity verification and transaction consent as part of any type of electronic transaction; and Identity – Portal that enables enterprises to get started with its identity products without any integration. The company also offers SEARCH, a biometric matching software for desktop fingerprint capture and image processing. The company was formerly known as Ipsidy Inc. and changed its name to authID Inc. authID Inc. was founded in 2009 and is headquartered in Denver, Colorado.