Sangoma Technologies (NASDAQ:SANG) and Adeia (NASDAQ:ADEA) Financial Contrast

Adeia (NASDAQ:ADEA) and Sangoma Technologies (NASDAQ:SANG) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adeia	26.05%	39.26%	17.50%
Sangoma Technologies	-38.99%	-3.85%	-2.93%

Insider and Institutional Ownership

97.4% of Adeia shares are held by institutional investors. Comparatively, 39.7% of Sangoma Technologies shares are held by institutional investors. 2.0% of Adeia shares are held 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adeia	$443.39 million	5.75	$111.07 million	$1.08	21.42
Sangoma Technologies	$200.06 million	0.81	-$81.09 million	($2.39)	-2.03

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

Volatility and Risk

Adeia has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Adeia and Sangoma Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adeia	0	2	4	0	2.67
Sangoma Technologies	2	2	1	0	1.80

Adeia currently has a consensus price target of $37.60, suggesting a potential upside of 62.56%. Sangoma Technologies has a consensus price target of $4.00, suggesting a potential downside of 17.53%. Given Adeia’s stronger consensus rating and higher possible upside, research analysts clearly believe Adeia is more favorable than Sangoma Technologies.

Summary

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

About Adeia

Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, 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.