Sangoma Technologies (NASDAQ:SANG – Get Rating) and FactSet Research Systems (NYSE:FDS – Get Rating) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Analyst Ratings
This is a summary of current recommendations and price targets for Sangoma Technologies and FactSet Research Systems, as provided by MarketBeat.
Get Sangoma Technologies alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sangoma Technologies | 0 | 0 | 2 | 0 | 3.00 |
| FactSet Research Systems | 2 | 2 | 4 | 0 | 2.25 |
Sangoma Technologies presently has a consensus target price of $15.90, suggesting a potential upside of 227.84%. FactSet Research Systems has a consensus target price of $450.14, suggesting a potential upside of 3.89%. Given Sangoma Technologies' stronger consensus rating and higher probable upside, analysts clearly believe Sangoma Technologies is more favorable than FactSet Research Systems.
Volatility and Risk
Sangoma Technologies has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, FactSet Research Systems has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.Earnings & Valuation
This table compares Sangoma Technologies and FactSet Research Systems' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sangoma Technologies | $224.35 million | 0.50 | -$110.78 million | ($3.34) | -1.45 |
| FactSet Research Systems | $1.84 billion | 8.99 | $396.92 million | $10.98 | 39.46 |
FactSet Research Systems has higher revenue and earnings than Sangoma Technologies. Sangoma Technologies is trading at a lower price-to-earnings ratio than FactSet Research Systems, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
31.0% of Sangoma Technologies shares are held by institutional investors. Comparatively, 90.0% of FactSet Research Systems shares are held by institutional investors. 14.0% of Sangoma Technologies shares are held by insiders. Comparatively, 1.0% of FactSet Research Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Sangoma Technologies and FactSet Research Systems' 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% |
| FactSet Research Systems | 22.15% | 41.53% | 15.22% |
Summary
FactSet Research Systems beats Sangoma Technologies on 11 of the 14 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 FactSet Research Systems
(Get Rating)
FactSet Research Systems Inc. (the ""Company"" or ""FactSet"") is a global provider of integrated financial information, analytical applications and services for the investment and corporate communities. Since inception, global financial professionals have utilized the Company's content and multi-asset class solutions across each stage of the investment process. FactSet's goal is to provide a seamless user experience spanning idea generation, research, portfolio construction, trade execution, performance measurement, risk management, reporting, and portfolio analysis, in which the Company serves the front, middle, and back offices to drive productivity and improved performance. FactSet's flexible, open data and technology solutions can be implemented both across the investment portfolio lifecycle or as standalone components serving different workflows in the organization. FactSet is focused on growing the business throughout each of its three segments, the Americas, EMEA (formerly known as Europe), and Asia Pacific. The Company primarily delivers insight and information through the workflow solutions of Research, Analytics and Trading, Content and Technology Solutions (""CTS"") and Wealt
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