Reviewing Sangoma Technologies (NASDAQ:SANG) and Domo (NASDAQ:DOMO)

Sangoma Technologies (NASDAQ:SANG) and Domo (NASDAQ:DOMO) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sangoma Technologies and Domo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sangoma Technologies	1	2	1	0	2.00
Domo	3	4	2	0	1.89

Sangoma Technologies presently has a consensus target price of $4.00, suggesting a potential upside of 10.83%. Domo has a consensus target price of $4.83, suggesting a potential upside of 99.72%. Given Domo’s higher probable upside, analysts plainly believe Domo is more favorable than Sangoma Technologies.

Volatility and Risk

Sangoma Technologies has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Domo has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500.

Insider and Institutional Ownership

39.7% of Sangoma Technologies shares are owned by institutional investors. Comparatively, 76.6% of Domo shares are owned by institutional investors. 14.0% of Sangoma Technologies shares are owned by insiders. Comparatively, 13.3% of Domo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sangoma Technologies	-3.04%	-2.26%	-1.71%
Domo	-17.43%	N/A	-25.99%

Valuation & Earnings

This table compares Sangoma Technologies and Domo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sangoma Technologies	$212.63 million	0.56	-$5.01 million	($0.19)	-18.99
Domo	$318.86 million	0.34	-$59.34 million	($1.33)	-1.82

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

Domo, Inc., together with its subsidiaries, operates a cloud-based business intelligence platform in North America, Western Europe, Canada, Australia, and Japan. Its platform digitally connects from the chief executive officer to the frontline employee with the various people, data, and systems in an organization, as well as giving them access to real-time data and insights, and allowing them to manage business via various browsers and visualization engines accessible across laptops, TV screens, monitors, tablets, and smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.