Financial Review: TaskUs (NASDAQ:TASK) & Ooma (NYSE:OOMA)

TaskUs (NASDAQ:TASKGet Rating) and Ooma (NYSE:OOMAGet Rating) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Volatility and Risk

TaskUs has a beta of 3.55, indicating that its stock price is 255% more volatile than the S&P 500. Comparatively, Ooma has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Insider and Institutional Ownership

76.1% of TaskUs shares are owned by institutional investors. Comparatively, 83.7% of Ooma shares are owned by institutional investors. 8.5% of Ooma shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for TaskUs and Ooma, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TaskUs 0 3 6 0 2.67
Ooma 0 1 4 0 2.80

TaskUs currently has a consensus target price of $32.11, suggesting a potential upside of 101.07%. Ooma has a consensus target price of $23.25, suggesting a potential upside of 69.09%. Given TaskUs’ higher probable upside, research analysts plainly believe TaskUs is more favorable than Ooma.

Earnings & Valuation

This table compares TaskUs and Ooma’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TaskUs $760.70 million 2.04 -$58.70 million $0.46 34.72
Ooma $192.29 million 1.74 -$1.75 million ($0.06) -229.17

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

Profitability

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

Net Margins Return on Equity Return on Assets
TaskUs 5.48% 12.80% 6.38%
Ooma -0.83% -0.65% -0.30%

Summary

TaskUs beats Ooma on 10 of the 14 factors compared between the two stocks.

About TaskUs

(Get Rating)

TaskUs, Inc. provides digital outsourcing services for companies worldwide. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through digital channels; and other solutions, including customer care services for new product or market launches, trust and safety solutions, and customer acquisition solutions. The company also offers content security services, such as review and disposition of user and advertiser generated content, which include removal or labeling of policy violating, and offensive or misleading content; and artificial intelligence (AI) solutions that consist of data labeling, annotation, and transcription services for training and tuning AI algorithms through the process of machine learning. It serves clients in various industry segments within the digital economy, including e-commerce, FinTech, food delivery and ride sharing, gaming, HiTech, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

About Ooma

(Get Rating)

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 Office Pro that offers services, including HD video meetings, call recording, enhanced call blocking, and voicemail transcription; Ooma Connect, which delivers fixed wireless internet connectivity; Ooma Managed Wi-Fi, a plug-and-play enterprise-grade Wi-Fi solution; and Ooma Enterprise, a unified-communications-as-a-service solution. It also provides Ooma AirDial, a plain old telephone service; Ooma Telo basic that provides unlimited personal calling within the Unites States; Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis; PureVoice HD, a residential phone services; Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; and Ooma Telo 4G, which combines the Ooma Telo base station with the Ooma 4G Cellular Adapter and battery back-up. In addition, the company offers Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; Ooma Smart Security, a security and monitoring platform; and Talkatone mobile app. It offers its products through direct sales, distributors, retailers, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

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