Sangoma Technologies (NASDAQ:SANG – Get Free Report) and Commerce.com (NASDAQ:CMRC – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Risk and Volatility
Sangoma Technologies has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Commerce.com has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Sangoma Technologies and Commerce.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sangoma Technologies | 2 | 2 | 1 | 0 | 1.80 |
| Commerce.com | 3 | 2 | 1 | 1 | 2.00 |
Sangoma Technologies currently has a consensus target price of $4.00, indicating a potential downside of 15.43%. Commerce.com has a consensus target price of $4.17, indicating a potential upside of 13.53%. Given Commerce.com’s stronger consensus rating and higher probable upside, analysts plainly believe Commerce.com is more favorable than Sangoma Technologies.
Profitability
This table compares Sangoma Technologies and Commerce.com’s 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% |
| Commerce.com | -1.66% | 20.49% | 2.92% |
Insider and Institutional Ownership
39.7% of Sangoma Technologies shares are held by institutional investors. Comparatively, 79.2% of Commerce.com shares are held by institutional investors. 14.0% of Sangoma Technologies shares are held by insiders. Comparatively, 2.7% of Commerce.com shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Sangoma Technologies and Commerce.com”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sangoma Technologies | $200.06 million | 0.79 | -$81.09 million | ($2.39) | -1.98 |
| Commerce.com | $342.35 million | 0.89 | -$19.34 million | ($0.07) | -52.43 |
Commerce.com has higher revenue and earnings than Sangoma Technologies. Commerce.com is trading at a lower price-to-earnings ratio than Sangoma Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Commerce.com beats Sangoma Technologies on 11 of the 14 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 Commerce.com
BigCommerce Holdings, Inc. operates a software-as-a-service platform for small businesses, mid-markets, and large enterprises in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company’s platform provides various services for launching and scaling e-commerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integrations. As of December 31, 2021, it served approximately 60,000 online stores across industries. BigCommerce Holdings, Inc. was founded in 2009 and is headquartered in Austin, Texas.
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