Critical Review: TaoWeave (NASDAQ:TWAV) vs. Virtus Diversified Income & Convertible Fund (NYSE:ACV)

TaoWeave (NASDAQ:TWAV) and Virtus Diversified Income & Convertible Fund (NYSE:ACV) are both financial services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for TaoWeave and Virtus Diversified Income & Convertible Fund, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaoWeave	1	0	0	0	1.00
Virtus Diversified Income & Convertible Fund	0	0	0	0	0.00

Institutional and Insider Ownership

2.0% of TaoWeave shares are held by institutional investors. 2.7% of TaoWeave shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares TaoWeave and Virtus Diversified Income & Convertible Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TaoWeave	-260.77%	-80.80%	-68.83%
Virtus Diversified Income & Convertible Fund	N/A	N/A	N/A

Valuation and Earnings

This table compares TaoWeave and Virtus Diversified Income & Convertible Fund”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaoWeave	$2.44 million	2.31	-$6.36 million	($1.71)	-0.99
Virtus Diversified Income & Convertible Fund	$43.67 million	N/A	N/A	$1.65	14.83

Virtus Diversified Income & Convertible Fund has higher revenue and earnings than TaoWeave. TaoWeave is trading at a lower price-to-earnings ratio than Virtus Diversified Income & Convertible Fund, indicating that it is currently the more affordable of the two stocks.

Summary

Virtus Diversified Income & Convertible Fund beats TaoWeave on 6 of the 9 factors compared between the two stocks.

About TaoWeave

Oblong Inc., together with its subsidiaries, provides multi-stream collaboration technologies and managed services for video collaboration and network applications in the United States and internationally. The company operates in two segments, Collaboration Products and Managed Services. Its flagship product is Mezzanine that enables visual collaboration across multi-users, multi-screens, multi-devices, and multi-locations for video telepresence, laptop and application sharing, and whiteboard sharing and slides applications. The company also provides managed videoconferencing services; and remote service management, which provides an overlay to enterprise information technology and channel partner support organizations, as well as support and management services for customer video environments. In addition, it offers network services comprising Cloud Connect: Video that allows its customers to outsource the management of their video traffic to them and provides the customer’s office locations with a secure, dedicated video network connection to the Oblong Cloud for video communications; Cloud Connect: Converge, which offers customized multiprotocol label switching solutions; and Cloud Connect: Cross Connect that allows the customer to leverage existing carrier for the extension of a Layer 2 private line to its data center. Further, it provides professional services, such as software development, visual and interaction design, engineering, and project support services; and resells video equipment to its customers. Oblong Inc. is based in Conifer, Colorado.

About Virtus Diversified Income & Convertible Fund

Virtus Diversified Income & Convertible Fund is a closed-ended balanced mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Allianz Global Investors U.S. LLC. It invests in the public equity and fixed income markets. The fund primarily invests in diversified portfolio of convertible securities, income-producing equity securities, and income-producing debt and other instruments of varying maturities. It employs fundamental analysis along with bottom-up stock picking approach. Virtus Diversified Income & Convertible Fund was formed In May 27, 2015 and is domiciled in United States.