Trend Micro (OTCMKTS:TMICY – Get Free Report) and Sangoma Technologies (NASDAQ:SANG – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.
Analyst Ratings
This is a summary of recent ratings for Trend Micro and Sangoma Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trend Micro | 0 | 1 | 0 | 1 | 3.00 |
| Sangoma Technologies | 2 | 2 | 1 | 0 | 1.80 |
Sangoma Technologies has a consensus price target of $4.00, indicating a potential downside of 16.14%. Given Sangoma Technologies’ higher probable upside, analysts clearly believe Sangoma Technologies is more favorable than Trend Micro.
Risk & Volatility
Trend Micro has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Valuation & Earnings
This table compares Trend Micro and Sangoma Technologies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trend Micro | $1.85 billion | 3.18 | $231.30 million | $1.76 | 25.54 |
| Sangoma Technologies | $200.07 million | 0.79 | -$81.09 million | ($2.41) | -1.98 |
Trend Micro has higher revenue and earnings than Sangoma Technologies. Sangoma Technologies is trading at a lower price-to-earnings ratio than Trend Micro, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Trend Micro and Sangoma Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trend Micro | 10.59% | 25.31% | 7.53% |
| Sangoma Technologies | -39.41% | -4.68% | -3.57% |
Institutional & Insider Ownership
0.1% of Trend Micro shares are held by institutional investors. Comparatively, 39.6% of Sangoma Technologies shares are held by institutional investors. 14.0% of Sangoma Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Trend Micro beats Sangoma Technologies on 10 of the 15 factors compared between the two stocks.
About Trend Micro
Trend Micro is a global cybersecurity company that develops software and services to help organizations and individuals protect against digital threats. Its offerings cover endpoint, network, cloud and email security, as well as threat detection and response. The company’s portfolio includes Trend Vision One, a cybersecurity platform that brings together threat detection, investigation and response capabilities, and products for protecting cloud environments and devices. Trend Micro also provides threat intelligence and security services to businesses, governments and consumers.
About Sangoma Technologies
Sangoma Technologies is a Canadian business communications provider offering cloud-based and on-premises products and services. Its portfolio includes unified communications, contact center solutions, business phone systems, SIP trunking and collaboration tools designed to help organizations manage voice and digital communications. The company’s offerings include hosted communications services as well as software and hardware for business telephony. Sangoma also supports the Asterisk and FreePBX communications platforms; its acquisition of Digium in 2018 expanded its portfolio and brought the Asterisk business into the company.
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