Head to Head Analysis: Ooma (NYSE:OOMA) vs. Brightcove (NYSE:BCOV)

Ooma (NYSE:OOMA) and Brightcove (NASDAQ:BCOV) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares Ooma and Brightcove’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ooma -11.75% -42.05% -18.71%
Brightcove -10.13% -13.98% -7.09%

Valuation & Earnings

This table compares Ooma and Brightcove’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ooma $129.23 million 1.93 -$14.57 million ($0.69) -17.49
Brightcove $164.83 million 2.28 -$14.03 million ($0.27) -36.85

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ooma and Brightcove, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ooma 0 1 4 0 2.80
Brightcove 0 0 2 0 3.00

Ooma presently has a consensus target price of $17.88, indicating a potential upside of 48.09%. Brightcove has a consensus target price of $13.00, indicating a potential upside of 30.65%. Given Ooma’s higher possible upside, equities research analysts plainly believe Ooma is more favorable than Brightcove.

Insider and Institutional Ownership

76.0% of Ooma shares are held by institutional investors. Comparatively, 78.9% of Brightcove shares are held by institutional investors. 10.2% of Ooma shares are held by company insiders. Comparatively, 1.9% of Brightcove 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

Ooma has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Brightcove has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Summary

Brightcove beats Ooma on 9 of the 13 factors compared between the two stocks.

Ooma Company Profile

Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company's smart cloud-based SaaS platform serves as a communications hub, which offers cloud-based communications solutions, smart security, and other connected services. Its business and residential solutions deliver PureVoice high-definition voice quality, advanced functionality, and integration with mobile devices; and platform helps to create smart workplace and homes by offering communications, monitoring, security, automation, productivity, and networking infrastructure applications. The company's products and services include Ooma Office, a multi-user communications system that provides everything needed to manage communications in and out of the office for small businesses; Ooma Office Mobile HD app to make, receive, and transfer phone calls; and Ooma Enterprise, an unified-communications-as-a-service. It also provides Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a solution that connects to the Internet wirelessly using the home's Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from any phone in the home; and Ooma HD3 cordless handset. In addition, the company offers Ooma Premier Service, a suite of advanced calling features to enhance the capabilities of Ooma Telo; and Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings with iOS or Android device over a Wi-Fi or cellular data connection. Further, it provides Ooma Smart Security, a security and monitoring platform; Ooma Smart Cam, an indoor/outdoor high-definition video security camera; and Talkatone mobile app. The company offers its products through direct sales, retailers, distributors, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

Brightcove Company Profile

Brightcove Inc. provides cloud-based services for video. It offers Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices. The company also provides Zencoder, a cloud-based video encoding service for file support, quality and control, speed and reliability, platform and security, and account and integration; SSAI, a cloud-based ad insertion and video stitching service; and Player, a cloud-based service for creating and managing video player experiences. In addition, it offers Video Marketing Suite, a suite of video technologies to address the needs of marketers to drive awareness, engagement, and conversion; OTT Flow, a service for media companies and content owners to deploy direct-to-consumer, live and on-demand video services across platforms; and Enterprise video suite, an enterprise-class platform for internal communications, employee training, live streaming, marketing, and e-commerce videos. Further, the company provides account management, professional, support, and online and onsite training services. It serves media companies, broadcasters, publishers, sports and entertainment companies, fashion and hospitality brands and corporations, faith-based institutions, e-commerce platforms, and hi-tech organizations; and governments, educational institutions, and non-profit organizations through direct sales, referral partners, channel partners, and resellers in North America, Europe, Japan, the Asia Pacific, and internationally, as well as sells its products online. The company was formerly known as Video Marketplace, Inc. and changed its name to Brightcove Inc. in March 2005. Brightcove Inc. was founded in 2004 and is headquartered in Boston, Massachusetts.

Receive News & Ratings for Ooma Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ooma and related companies with MarketBeat.com's FREE daily email newsletter.