Financial Comparison: Sangoma Technologies (NASDAQ:SANG) & Tyler Technologies (NYSE:TYL)

Sangoma Technologies (NASDAQ:SANG) and Tyler Technologies (NYSE:TYL) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Volatility & Risk

Sangoma Technologies has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sangoma Technologies and Tyler Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sangoma Technologies	$200.07 million	0.81	-$81.09 million	($2.39)	-2.03
Tyler Technologies	$2.33 billion	5.78	$315.60 million	$7.54	43.69

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

Insider & Institutional Ownership

39.6% of Sangoma Technologies shares are owned by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are owned by institutional investors. 1.1% of Tyler Technologies shares are owned by 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.

Profitability

This table compares Sangoma Technologies and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sangoma Technologies	-38.99%	-3.85%	-2.93%
Tyler Technologies	13.36%	11.15%	7.14%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sangoma Technologies and Tyler Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sangoma Technologies	2	2	1	0	1.80
Tyler Technologies	0	5	11	1	2.76

Sangoma Technologies presently has a consensus target price of $4.00, indicating a potential downside of 17.53%. Tyler Technologies has a consensus target price of $450.28, indicating a potential upside of 36.68%. Given Tyler Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Tyler Technologies is more favorable than Sangoma Technologies.

Summary

Tyler Technologies beats Sangoma Technologies on 14 of the 15 factors compared between the two stocks.

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.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.