Quantum (NASDAQ:QMCO – Get Free Report) and One Stop Systems (NASDAQ:OSS – Get Free Report) are both small-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.
Analyst Ratings
This is a summary of recent recommendations and price targets for Quantum and One Stop Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quantum | 1 | 0 | 4 | 0 | 2.60 |
| One Stop Systems | 1 | 1 | 3 | 1 | 2.67 |
Quantum currently has a consensus price target of $24.00, indicating a potential upside of 0.65%. One Stop Systems has a consensus price target of $16.00, indicating a potential upside of 76.60%. Given One Stop Systems’ stronger consensus rating and higher possible upside, analysts plainly believe One Stop Systems is more favorable than Quantum.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quantum | $279.58 million | 3.36 | -$101.05 million | ($13.24) | -1.80 |
| One Stop Systems | $32.22 million | 7.01 | $5.09 million | $0.05 | 181.20 |
One Stop Systems has lower revenue, but higher earnings than Quantum. Quantum is trading at a lower price-to-earnings ratio than One Stop Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Quantum and One Stop Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quantum | -80.76% | N/A | -7.28% |
| One Stop Systems | 2.67% | 2.22% | 1.71% |
Insider and Institutional Ownership
63.7% of Quantum shares are owned by institutional investors. Comparatively, 32.7% of One Stop Systems shares are owned by institutional investors. 41.0% of Quantum shares are owned by company insiders. Comparatively, 3.9% of One Stop Systems shares are owned 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.
Risk & Volatility
Quantum has a beta of 3.14, indicating that its stock price is 214% more volatile than the S&P 500. Comparatively, One Stop Systems has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Summary
One Stop Systems beats Quantum on 10 of the 15 factors compared between the two stocks.
About Quantum
Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Myriad All-Flash File and Object Storage Software for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics; Unified Surveillance Platform Software that unified compute and storage for video surveillance recording, storage, and analytics; StorNext Hybrid Flash/Disk File Storage Software for video editing, post-production, and streaming applications, as well as digital file archives; and CatDV Asset Management Software for indexing, cataloging, enriching video, audio, and image files, and workflow orchestration. It also provides ActiveScale Object Storage Software that scalable and durable storage for long term data preservation and protection; DXi Backup Appliances to build backup appliances for high-speed backup and recovery and multisite data protection; and Scalar Tape Storage that secure storage for long term data archiving and offline data protection which are used by hyperscalers and enterprises. In addition, the company sells linear tape-open (LTO) a tape drives for small business data protection and archiving; and LTO media for use in tape storage systems. Further, it offers global support, managed services, customer support agreements, software subscriptions, installation, education, and consulting and training services, as well as Quantum-as-a-Service. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. It has a partnership with Tiger Surveillance to deliver end-to-end solutions for long-term retention and archiving of video surveillance data. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.
About One Stop Systems
One Stop Systems, Inc. engages in the design, manufacture, and marketing of high-performance compute, high speed storage hardware and software, switch fabrics, and systems for edge deployments in the United States and internationally. The company's systems are built using the central processing unit, graphical processing unit, high-speed switch fabrics, and flash storage technologies. It provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems, as well as edge optimized industrial and panel PCs, tablets, and handheld compute devices. The company also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions. It sells its products to multinational companies, governmental agencies, military contractors, military services, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors. The company was founded in 1998 and is headquartered in Escondido, California.
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