Reviewing SMC Entertainment (OTCMKTS:SMCE) and Ooma (NYSE:OOMA)

SMC Entertainment (OTCMKTS:SMCE) and Ooma (NYSE:OOMA) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Valuation & Earnings

This table compares SMC Entertainment and Ooma”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMC Entertainment	N/A	N/A	-$1.56 million	($0.01)	-0.30
Ooma	$236.74 million	1.76	-$830,000.00	($0.37)	-41.80

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

Insider & Institutional Ownership

80.4% of Ooma shares are held by institutional investors. 41.2% of SMC Entertainment shares are held by insiders. Comparatively, 9.8% of Ooma shares are held 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.

Risk and Volatility

SMC Entertainment has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Ooma has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SMC Entertainment	N/A	N/A	-5,893.58%
Ooma	-3.83%	-2.51%	-1.32%

Analyst Recommendations

This is a summary of current ratings and target prices for SMC Entertainment and Ooma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMC Entertainment	0	0	0	0	0.00
Ooma	0	1	5	0	2.83

Ooma has a consensus target price of $16.60, suggesting a potential upside of 7.33%. Given Ooma’s stronger consensus rating and higher possible upside, analysts plainly believe Ooma is more favorable than SMC Entertainment.

Summary

Ooma beats SMC Entertainment on 8 of the 13 factors compared between the two stocks.

About SMC Entertainment

SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.

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.