Sangoma Technologies (NASDAQ:SANG – Get Free Report) and TrueCar (NASDAQ:TRUE – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Sangoma Technologies and TrueCar, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sangoma Technologies | 0 | 3 | 1 | 0 | 2.25 |
| TrueCar | 0 | 0 | 2 | 0 | 3.00 |
Sangoma Technologies presently has a consensus target price of $4.83, indicating a potential downside of 19.58%. TrueCar has a consensus target price of $3.75, indicating a potential upside of 19.43%. Given TrueCar’s stronger consensus rating and higher possible upside, analysts plainly believe TrueCar is more favorable than Sangoma Technologies.
Risk and Volatility
Profitability
This table compares Sangoma Technologies and TrueCar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sangoma Technologies | -12.23% | -3.07% | -1.89% |
| TrueCar | -17.63% | -14.10% | -11.03% |
Valuation & Earnings
This table compares Sangoma Technologies and TrueCar”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sangoma Technologies | $250.03 million | 0.57 | -$29.03 million | ($0.93) | -6.46 |
| TrueCar | $165.28 million | 1.74 | -$49.77 million | ($0.40) | -7.85 |
Sangoma Technologies has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than Sangoma Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
39.7% of Sangoma Technologies shares are held by institutional investors. Comparatively, 79.4% of TrueCar shares are held by institutional investors. 14.0% of Sangoma Technologies shares are held by company insiders. Comparatively, 3.3% of TrueCar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
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 TrueCar
TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.
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