Ooma (NYSE:OOMA – Get Free Report) and SMC Entertainment (OTCMKTS:SMCE – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares Ooma and SMC Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ooma | $236.74 million | 1.71 | -$830,000.00 | ($0.37) | -40.42 |
| SMC Entertainment | N/A | N/A | -$1.56 million | ($0.01) | -0.27 |
Ooma has higher revenue and earnings than SMC Entertainment. Ooma is trading at a lower price-to-earnings ratio than SMC Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ooma | 0 | 1 | 5 | 0 | 2.83 |
| SMC Entertainment | 0 | 0 | 0 | 0 | 0.00 |
Ooma currently has a consensus target price of $16.60, indicating a potential upside of 11.00%. Given Ooma’s stronger consensus rating and higher possible upside, research analysts clearly believe Ooma is more favorable than SMC Entertainment.
Profitability
This table compares Ooma and SMC Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ooma | -3.83% | -2.51% | -1.32% |
| SMC Entertainment | N/A | N/A | -5,893.58% |
Institutional and Insider Ownership
80.4% of Ooma shares are held by institutional investors. 9.8% of Ooma shares are held by company insiders. Comparatively, 41.2% of SMC Entertainment shares are held by company 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.
Risk & Volatility
Ooma has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, SMC Entertainment has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.
Summary
Ooma beats SMC Entertainment on 8 of the 13 factors compared between the two stocks.
About Ooma
Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Connect, which delivers fixed wireless internet connectivity; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution. It also provides Ooma AirDial, a plain old telephone service; PureVoice HD, a residential phone services; Ooma basic that provides unlimited personal calling within the United States; and Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis. In addition, the company offers Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; and Ooma Telo LTE, which combines the Ooma Telo base station with the Ooma LTE Adapter and battery back-up. Further, it provides Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; 2600Hz provides business communication applications; Talkatone mobile app; and OnSIP, an UCaaS solutions. The company offers its products through direct sales, distributors, retailers, and resellers, as well as online and sale representatives. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.
About SMC Entertainment
SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.
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