Infinera Corporation (NASDAQ: INFN) and Ooma (NYSE:OOMA) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Valuation & Earnings
This table compares Infinera Corporation and Ooma’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Infinera Corporation||$718.84 million||1.73||-$60.74 million||($0.90)||-9.30|
|Ooma||$110.34 million||1.65||-$10.66 million||($0.71)||-13.94|
Ooma has higher revenue, but lower earnings than Infinera Corporation. Ooma is trading at a lower price-to-earnings ratio than Infinera Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Infinera Corporation 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 recent ratings and price targets for Infinera Corporation and Ooma, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Infinera Corporation currently has a consensus target price of $11.82, indicating a potential upside of 41.20%. Ooma has a consensus target price of $12.00, indicating a potential upside of 21.21%. Given Infinera Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe Infinera Corporation is more favorable than Ooma.
Insider and Institutional Ownership
86.7% of Infinera Corporation shares are held by institutional investors. Comparatively, 74.0% of Ooma shares are held by institutional investors. 2.9% of Infinera Corporation shares are held by company insiders. Comparatively, 48.2% of Ooma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Infinera Corporation has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Ooma has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Infinera Corporation beats Ooma on 10 of the 14 factors compared between the two stocks.
Infinera Corporation Company Profile
Infinera Corporation provides optical transport networking equipment, software and services to telecommunications service providers, Internet content providers (ICPs), cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers and government entities across the globe. The Company’s portfolio consists of the Infinera DTN-X Family, the Infinera DTN platform, the Infinera Cloud Xpress Family, the Infinera XTM Series, the Infinera XTG Series and the Infinera FlexILS platform, addressing long-haul, subsea and metro networks end-to-end. Its technology includes Infinera Intelligent Transport Network Architecture, Infinera Photonic Integrated Circuits, Infinera FlexCoherent Processor, Super-Channels, Sliceable Photonics, Disaggregation, Integrated Digital Switching, Infinera Instant Bandwidth, Infinera Packet-Optical Transport, Multi-layer Switching and Optimization, and Management, Control and Security.
Ooma Company Profile
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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