Tyler Technologies (NYSE:TYL) & Sangoma Technologies (NASDAQ:SANG) Head-To-Head Comparison

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tyler Technologies	0	5	11	1	2.76
Sangoma Technologies	2	2	1	0	1.80

Tyler Technologies presently has a consensus target price of $450.28, suggesting a potential upside of 36.68%. Sangoma Technologies has a consensus target price of $4.00, suggesting a potential downside of 17.53%. Given Tyler Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Tyler Technologies is more favorable than Sangoma Technologies.

Volatility & Risk

Tyler Technologies has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Valuation and Earnings

This table compares Tyler Technologies and Sangoma Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tyler Technologies	$2.33 billion	5.78	$315.60 million	$7.54	43.69
Sangoma Technologies	$200.07 million	0.81	-$81.09 million	($2.39)	-2.03

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tyler Technologies	13.36%	11.15%	7.14%
Sangoma Technologies	-38.99%	-3.85%	-2.93%

Insider & Institutional Ownership

93.3% of Tyler Technologies shares are owned by institutional investors. Comparatively, 39.6% of Sangoma Technologies shares are owned by institutional investors. 1.1% of Tyler Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Tyler Technologies beats Sangoma Technologies on 14 of the 15 factors compared between the two stocks.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

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.