Contrasting Sangoma Technologies (NASDAQ:SANG) and SailPoint (NASDAQ:SAIL)

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

Insider and Institutional Ownership

39.7% of Sangoma Technologies shares are held by institutional investors. 2.0% of SailPoint shares are held by company insiders. Comparatively, 14.0% of Sangoma Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SailPoint	-30.87%	0.16%	0.08%
Sangoma Technologies	-2.53%	-1.80%	-1.33%

Analyst Recommendations

This is a summary of current recommendations for SailPoint and Sangoma Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SailPoint	2	3	15	3	2.83
Sangoma Technologies	1	0	2	1	2.75

SailPoint currently has a consensus price target of $25.37, indicating a potential upside of 78.81%. Sangoma Technologies has a consensus price target of $11.00, indicating a potential upside of 140.44%. Given Sangoma Technologies’ higher possible upside, analysts plainly believe Sangoma Technologies is more favorable than SailPoint.

Earnings and Valuation

This table compares SailPoint and Sangoma Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SailPoint	$1.02 billion	7.84	-$315.83 million	($4.79)	-2.96
Sangoma Technologies	$236.69 million	0.64	-$5.01 million	($0.16)	-28.59

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

Summary

SailPoint beats Sangoma Technologies on 8 of the 14 factors compared between the two stocks.

About SailPoint

SailPoint, Inc. delivers solutions to enable comprehensive identity security for the enterprise. Its solutions enable organizations to establish, control, and automate policies that help them define and maintain a robust security posture and achieve regulatory compliance. The company was founded by Mark David McClain in 2005 and is headquartered in Austin, TX.

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.