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Contrasting Sangoma Technologies (NASDAQ:SANG) and Similarweb (NYSE:SMWB)

Financial News Live ·  Jan 5, 2023 03:11

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

Analyst Recommendations

This is a summary of current ratings and price targets for Sangoma Technologies and Similarweb, as reported by MarketBeat.

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Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sangoma Technologies 0 0 2 0 3.00
Similarweb 0 0 5 0 3.00

Sangoma Technologies presently has a consensus price target of $15.90, indicating a potential upside of 248.68%. Similarweb has a consensus price target of $13.40, indicating a potential upside of 113.04%. Given Sangoma Technologies' higher possible upside, analysts clearly believe Sangoma Technologies is more favorable than Similarweb.

Profitability

This table compares Sangoma Technologies and Similarweb's net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets
Sangoma Technologies -46.82% -5.54% -3.53%
Similarweb -50.80% -141.06% -36.14%

Institutional and Insider Ownership

31.0% of Sangoma Technologies shares are owned by institutional investors. Comparatively, 36.7% of Similarweb shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Sangoma Technologies and Similarweb's revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sangoma Technologies $224.35 million 0.47 -$110.78 million ($3.34) -1.37
Similarweb $137.67 million 3.39 -$68.98 million ($1.23) -5.11

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

Summary

Sangoma Technologies beats Similarweb on 6 of the 11 factors compared between the two stocks.

About Sangoma Technologies

(Get Rating)

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 also 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, the company offers VoIP gateways, session border controllers, telephony card, and managed service provider services. The company serves small and medium sized businesses, enterprises, original equipment manufacturers, carriers, and service providers. Sangoma Technologies Corporation was founded in 1984 and is headquartered in Markham, Canada.

About Similarweb

(Get Rating)

Similarweb Ltd. provides a platform for digital intelligence in the United States, Europe, Asia Pacific, the United Kingdom, Israel, and internationally. It offers digital research intelligence solutions that allow senior leaders, strategy, business intelligence, and consumer insights teams to benchmark performance against competitors and market leaders, analyze trends in the market, conduct deeper research into specific companies, and analyze audience behavior; and digital marketing solutions, which enable marketing leaders, search engine optimization, and content managers, pay-per-click, performance marketers, affiliate marketers, and media buyers to understand their competitors' online acquisition strategies in each marketing channel. The company also provides shopper intelligence solutions that allows digital commerce leadership, and category and product managers to analyze a view of their customers' digital journeys, monitor consumer demand, increase brand visibility in the search process, and optimize category and product level conversion in the purchase process; and sales intelligence solutions, which enables sales management and operations, sales representatives, and account management teams to access relevant buying signals and digital insights of their customers in to generate leads quickly. In addition, it offers investor intelligence solution that allows portfolio managers, investment professionals, data scientists, and research analysts to access an end-to-end view of market, sector or company performance to ideate and monitor investment opportunities, forecast market performance, and perform due diligence. The company serves retail, consumer packaged goods, travel, consumer finance, business-to-business software, and logistics companies; and consultancies, marketing and advertising agencies, media and publishers, payment processors, and institutional investors. Similarweb Ltd. was incorporated in 2009 and is headquartered in Tel Aviv, Israel.

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