Analyzing TESSCO Technologies (TESS) and Ooma (OOMA)
TESSCO Technologies (NASDAQ: TESS) and Ooma (NYSE:OOMA) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
This table compares TESSCO Technologies and Ooma’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for TESSCO Technologies and Ooma, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ooma has a consensus price target of $12.67, suggesting a potential upside of 5.56%. Given Ooma’s higher possible upside, analysts clearly believe Ooma is more favorable than TESSCO Technologies.
TESSCO Technologies pays an annual dividend of $0.80 per share and has a dividend yield of 4.8%. Ooma does not pay a dividend. TESSCO Technologies pays out 235.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
58.3% of TESSCO Technologies shares are owned by institutional investors. Comparatively, 75.1% of Ooma shares are owned by institutional investors. 26.9% of TESSCO Technologies shares are owned by insiders. Comparatively, 48.2% of Ooma shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares TESSCO Technologies and Ooma’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TESSCO Technologies||$533.29 million||0.26||$1.44 million||$0.34||49.41|
|Ooma||$104.52 million||2.18||-$12.94 million||($0.71)||-16.90|
TESSCO Technologies has higher revenue and earnings than Ooma. Ooma is trading at a lower price-to-earnings ratio than TESSCO Technologies, indicating that it is currently the more affordable of the two stocks.
TESSCO Technologies beats Ooma on 7 of the 13 factors compared between the two stocks.
About TESSCO Technologies
TESSCO Technologies Incorporated architects and delivers the product and value chain solutions to organizations responsible for building, operating, maintaining and reselling cellular, mobile communications, wireless-fidelity (Wi-Fi), machine-to-machine, Internet of Things and wireless backhaul systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing Internet and information technology. Its customers include a diversified mix of carrier and public network operators, tower owners, program managers, contractors and integrators, wireless Internet service providers, industrial and enterprise self-maintained users (including railroads, utilities, mining operators, oil and gas operators and technicians), governments, manufacturers, value-added resellers, tier 1, 2 and 3 retail carrier stores and their independent agents, dealers and consumers, as well as other local and national retailers.
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.
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