Ooma (NYSE:OOMA) versus Aware (NASDAQ:AWRE) Head to Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ooma	3.57%	23.55%	10.65%
Aware	-52.60%	-36.87%	-25.29%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ooma and Aware, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ooma	0	2	6	0	2.75
Aware	1	0	0	0	1.00

Ooma presently has a consensus price target of $25.00, indicating a potential upside of 35.06%. Given Ooma’s stronger consensus rating and higher possible upside, research analysts plainly believe Ooma is more favorable than Aware.

Valuation and Earnings

This table compares Ooma and Aware”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ooma	$273.60 million	1.87	$6.46 million	$0.38	48.71
Aware	$17.29 million	1.20	-$5.87 million	($0.39)	-2.44

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

Institutional and Insider Ownership

80.4% of Ooma shares are owned by institutional investors. Comparatively, 24.4% of Aware shares are owned by institutional investors. 9.9% of Ooma shares are owned by company insiders. Comparatively, 34.3% of Aware 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.

Risk and Volatility

Ooma has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Aware has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Summary

Ooma beats Aware on 12 of the 14 factors compared between the two stocks.

About Ooma

Ooma, Inc. provides cloud-based communications services for businesses and consumers. Its business offerings include Ooma Office and Ooma Enterprise, which provide cloud phone systems and unified communications features, as well as contact center services and solutions for replacing traditional analog phone lines. For consumers, Ooma offers internet-based home phone service through its Telo platform, along with related mobile app and home connectivity features. The company serves customers primarily in the United States and Canada.

About Aware

Aware, Inc. (NASDAQ: AWRE) develops biometric software and identity-management solutions for government and commercial organizations. Its technology supports the collection, processing, storage, matching and management of biometric data, including fingerprints, facial images and iris images. The company’s product portfolio includes automated biometric identification systems, biometric data-management platforms, software development kits and mobile enrollment and authentication tools. These solutions are designed for applications such as civil identity programs, border management, law enforcement, defense, public safety and secure digital authentication.