TrueCar (NASDAQ:TRUE) & Sangoma Technologies (NASDAQ:SANG) Critical Survey

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

Earnings & Valuation

This table compares TrueCar and Sangoma Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrueCar	$158.71 million	1.87	-$49.77 million	($0.40)	-8.15
Sangoma Technologies	$252.53 million	0.53	-$29.03 million	($0.93)	-6.03

Sangoma Technologies has higher revenue and earnings than TrueCar. TrueCar 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 TrueCar and Sangoma Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrueCar	-17.63%	-14.10%	-11.03%
Sangoma Technologies	-12.23%	-3.07%	-1.89%

Institutional & Insider Ownership

79.4% of TrueCar shares are owned by institutional investors. Comparatively, 39.7% of Sangoma Technologies shares are owned by institutional investors. 3.3% of TrueCar shares are owned by insiders. Comparatively, 14.0% of Sangoma Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

TrueCar has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for TrueCar and Sangoma Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrueCar	0	0	2	0	3.00
Sangoma Technologies	0	3	1	0	2.25

TrueCar currently has a consensus target price of $3.75, suggesting a potential upside of 15.03%. Sangoma Technologies has a consensus target price of $4.83, suggesting a potential downside of 13.84%. Given TrueCar’s stronger consensus rating and higher probable upside, research analysts clearly believe TrueCar is more favorable than Sangoma Technologies.

About TrueCar

TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.

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.