Financial Review: Vocera Communications (VCRA) and Ooma (OOMA)

Vocera Communications (NYSE: VCRA) and Ooma (NYSE:OOMA) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Earnings & Valuation

This table compares Vocera Communications and Ooma’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vocera Communications $162.55 million 4.74 -$14.22 million ($0.51) -51.67
Ooma $104.52 million 1.84 -$12.94 million ($0.71) -14.30

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

Insider & Institutional Ownership

99.8% of Vocera Communications shares are held by institutional investors. Comparatively, 73.0% of Ooma shares are held by institutional investors. 6.3% of Vocera Communications shares are held by company insiders. Comparatively, 48.2% of Ooma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Vocera Communications and Ooma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vocera Communications -8.75% -8.29% -4.62%
Ooma -11.65% -32.29% -17.21%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Vocera Communications and Ooma, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vocera Communications 0 0 9 0 3.00
Ooma 1 2 2 0 2.20

Vocera Communications presently has a consensus target price of $33.00, suggesting a potential upside of 25.24%. Ooma has a consensus target price of $12.67, suggesting a potential upside of 24.79%. Given Vocera Communications’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Vocera Communications is more favorable than Ooma.

Summary

Vocera Communications beats Ooma on 10 of the 13 factors compared between the two stocks.

About Vocera Communications

Vocera Communications, Inc. is a provider of communication solutions for mobile workers in healthcare, hospitality, energy, education and other industries. The Company’s segments include Product and Service. The Company’s solutions include the Vocera Communication System, Vocera Care Experience, Vocera Engage integration platform, smartphone applications and its Experience Innovation Network. The Company’s Vocera Communication System consists of a software platform that connects communication devices, including its hands-free, wearable, voice-controlled communication badges, and third-party mobile devices that use its software applications to become part of the Vocera system. Its Vocera Collaboration Suite combines calling, texting, alerting and content distribution capabilities of Vocera into a smartphone application. Its Vocera Secure Texting is an alternative to non-secure short message service (SMS) texting.

About Ooma

Ooma, Inc. is a United States-based company, which offers Ooma, a communications platform for small businesses and consumers. Ooma serves as a communications hub, which offers cloud-based telephony, Internet security, home monitoring and other connected services. Ooma combines PureVoice high definition (HD) call quality features with mobile applications anytime, anywhere calling. Ooma is a full router capable of prioritizing voice data and directing traffic to ensure reliable phone service. Its enterprise-grade phone service built for small business includes features, such as calling features, including unlimited calling in United States and Canada, 911 service and toll-free numbers available; office features, including virtual receptionist, extension dialing and voicemail; mobility features, including call forwarding, voicemail forwarding and multi-ring, and one-touch Internet protocol (IP) phone features, including three way conference, transfer calls and call on hold.

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