Audioeye (NASDAQ:AEYE) vs. Sangoma Technologies (NASDAQ:SANG) Head to Head Analysis

Audioeye (NASDAQ:AEYE) and Sangoma Technologies (NASDAQ:SANG) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Valuation and Earnings

This table compares Audioeye and Sangoma Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Audioeye	$35.20 million	3.62	-$4.25 million	($0.28)	-36.64
Sangoma Technologies	$236.69 million	0.71	-$5.01 million	($0.16)	-31.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Audioeye	-8.88%	40.94%	9.77%
Sangoma Technologies	-2.39%	-1.74%	-1.25%

Analyst Recommendations

This is a summary of current ratings for Audioeye and Sangoma Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	0	3	0	2.50
Sangoma Technologies	1	0	1	1	2.67

Audioeye currently has a consensus price target of $22.00, suggesting a potential upside of 114.42%. Sangoma Technologies has a consensus price target of $11.00, suggesting a potential upside of 118.25%. Given Sangoma Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Sangoma Technologies is more favorable than Audioeye.

Insider & Institutional Ownership

51.1% of Audioeye shares are held by institutional investors. Comparatively, 39.7% of Sangoma Technologies shares are held by institutional investors. 40.7% of Audioeye shares are held by 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 and Risk

Audioeye has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Summary

Sangoma Technologies beats Audioeye on 8 of the 15 factors compared between the two stocks.

About Audioeye

AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.

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.