Head to Head Analysis: Ooma (OOMA) & InterDigital (NASDAQ:IDCC)
Ooma (NYSE: OOMA) and InterDigital (NASDAQ:IDCC) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitabiliy, analyst recommendations and institutional ownership.
InterDigital pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Ooma does not pay a dividend. InterDigital pays out 13.5% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Ooma and InterDigital’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ooma||$107.64 million||1.48||-$10.40 million||($0.70)||-12.43|
|InterDigital||$652.62 million||4.27||$476.32 million||$8.91||9.02|
InterDigital has higher revenue and earnings than Ooma. Ooma is trading at a lower price-to-earnings ratio than InterDigital, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Ooma and InterDigital, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ooma presently has a consensus target price of $12.30, indicating a potential upside of 41.38%. InterDigital has a consensus target price of $91.33, indicating a potential upside of 13.60%. Given Ooma’s stronger consensus rating and higher probable upside, research analysts clearly believe Ooma is more favorable than InterDigital.
Insider & Institutional Ownership
73.8% of Ooma shares are held by institutional investors. Comparatively, 69.2% of InterDigital shares are held by institutional investors. 48.2% of Ooma shares are held by insiders. Comparatively, 1.9% of InterDigital shares are held by 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.
This table compares Ooma and InterDigital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Ooma has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, InterDigital has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
InterDigital beats Ooma on 8 of the 15 factors compared between the two stocks.
Ooma Company Profile
Ooma, Inc. is a United States-based company, which offers Ooma, a communications platform for small businesses and consumers. Ooma serves as a communications hub, which offers cloud-based telephony, Internet security, home monitoring and other connected services. Ooma combines PureVoice high definition (HD) call quality features with mobile applications anytime, anywhere calling. Ooma is a full router capable of prioritizing voice data and directing traffic to ensure reliable phone service. Its enterprise-grade phone service built for small business includes features, such as calling features, including unlimited calling in United States and Canada, 911 service and toll-free numbers available; office features, including virtual receptionist, extension dialing and voicemail; mobility features, including call forwarding, voicemail forwarding and multi-ring, and one-touch Internet protocol (IP) phone features, including three way conference, transfer calls and call on hold.
InterDigital Company Profile
InterDigital, Inc. designs and develops technologies for wireless communications. The Company is focused on three technology areas: cellular wireless technology, Internet of things (IoT) technology, and, through its Hillcrest Laboratories, Inc. (Hillcrest Labs) subsidiary, sensor and sensor fusion technology. It offers a range of technologies that are used in digital cellular and wireless products and networks, including second generation (2G), third generation (3G), fourth generation (4G) and IEEE 802-related products and networks. Products incorporating its inventions include mobile devices, such as cellular phones, tablets, notebook computers and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; components, dongles and modules for wireless devices, and IoT devices and software platforms. The Company is developing a range of technologies in the areas of video compression and delivery, security, analytics, and other areas.
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