TrueCar (NASDAQ:TRUE – Get Free Report) and Sangoma Technologies (NASDAQ:SANG – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
Profitability
This table compares TrueCar and Sangoma Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TrueCar | -17.63% | -14.10% | -11.03% |
| Sangoma Technologies | -12.23% | -3.07% | -1.89% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for TrueCar and Sangoma Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TrueCar | 0 | 0 | 2 | 0 | 3.00 |
| Sangoma Technologies | 0 | 3 | 1 | 0 | 2.25 |
Volatility and Risk
TrueCar has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Valuation & Earnings
This table compares TrueCar and Sangoma Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TrueCar | $165.28 million | 1.85 | -$49.77 million | ($0.40) | -8.35 |
| Sangoma Technologies | $247.28 million | 0.55 | -$29.03 million | ($0.93) | -6.09 |
Sangoma Technologies has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than Sangoma Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
79.4% of TrueCar shares are held by institutional investors. Comparatively, 39.7% of Sangoma Technologies shares are held by institutional investors. 3.3% of TrueCar shares are held by company insiders. Comparatively, 14.0% of Sangoma Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
About TrueCar
TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.
About Sangoma Technologies
Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. The company offers Switchvox, a voice over internet protocol phone system; Switchvox Cloud, a unified communications solution, as well as provides cloud communication solutions. It offers SIP Trunking, a telephone service for one or multiple locations; PBXact Cloud, a centralized internet based solution; Asterisk and FreePBX, an open source IP PBX software; and FAXStation, a fax-over-IP solution. In addition, the company provides desk phone, DECT phones, and headset related products. Further, it offers VoIP gateways, session border controllers, telephony card, and managed service provider services. Sangoma Technologies Corporation was founded in 1984 and is headquartered in Markham, Canada.
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