AltiGen Communications (OTCMKTS:ATGN) & Ooma (NYSE:OOMA) Head to Head Survey

AltiGen Communications (OTCMKTS:ATGN) and Ooma (NYSE:OOMA) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Risk and Volatility

AltiGen Communications has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Ooma has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares AltiGen Communications and Ooma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AltiGen Communications	$13.62 million	1.27	$1.56 million	$0.09	7.44
Ooma	$256.85 million	1.19	-$6.90 million	($0.19)	-58.22

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AltiGen Communications	0	0	0	0	0.00
Ooma	0	1	4	0	2.80

Ooma has a consensus target price of $17.6250, indicating a potential upside of 59.34%. Given Ooma’s stronger consensus rating and higher possible upside, analysts clearly believe Ooma is more favorable than AltiGen Communications.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AltiGen Communications	18.15%	9.04%	7.47%
Ooma	-1.89%	2.72%	1.54%

Institutional and Insider Ownership

80.4% of Ooma shares are owned by institutional investors. 14.0% of AltiGen Communications shares are owned by company insiders. Comparatively, 9.9% of Ooma shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

AltiGen Communications beats Ooma on 8 of the 14 factors compared between the two stocks.

About AltiGen Communications

Altigen Communications, Inc. designs, develops, markets, and supports integrated communications solutions worldwide. It provides MaxCS IP-PBX, a software-based phone system that provides customers with business communications solutions; MaxACD Voice Over Internet Protocol (VoIP) Contact Center, a software-based automatic call distribution engine, which offers call routing and call distribution options; MaxMobile that extends a set of business PBX functionality to smart phone devices; and MaxCommunicator, a Windows-based desktop application, which provides call control and visual voice mail management to the desktop. The company offers MaxAgent, a Windows-based desktop application to bring call control and workgroup information to call center agents; MaxSupervisor, a Windows-based desktop application for call center supervisors; and MaxACD for Skype, a call center solution. In addition, it provides hosted services, which include hosted IP PBX, Skype for Business, session initiation protocol trunk, call center solution, voice and video calling, conference calling, and various long-distance services; and software assurance services, which offer customers with software updates, patches, new releases, and technical support for the applications they are licensed to use. The company serves financial services, healthcare, retail, and business services industries through a channel of distributors and resellers. Altigen Communications, Inc. was incorporated in 1994 and is based in Milpitas, California.

About Ooma

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 Connect, which delivers fixed wireless internet connectivity; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution. It also provides Ooma AirDial, a plain old telephone service; PureVoice HD, a residential phone services; Ooma basic that provides unlimited personal calling within the United States; and Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis. In addition, the company offers Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; and Ooma Telo LTE, which combines the Ooma Telo base station with the Ooma LTE Adapter and battery back-up. Further, it provides Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; 2600Hz provides business communication applications; Talkatone mobile app; and OnSIP, an UCaaS solutions. The company offers its products through direct sales, distributors, retailers, and resellers, as well as online and sale representatives. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.