Critical Analysis: Beyond Commerce (OTCMKTS:BYOC) and Ooma (NYSE:OOMA)

Beyond Commerce (OTCMKTS:BYOC) and Ooma (NYSE:OOMA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Volatility & Risk

Beyond Commerce has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, Ooma has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Beyond Commerce	-80.93%	N/A	-66.09%
Ooma	-2.04%	-2.22%	-1.13%

Valuation & Earnings

This table compares Beyond Commerce and Ooma”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beyond Commerce	$3.56 million	0.93	-$2.28 million	N/A	N/A
Ooma	$248.16 million	1.61	-$830,000.00	($0.19)	-78.53

Ooma has higher revenue and earnings than Beyond Commerce.

Analyst Ratings

This is a summary of current ratings and target prices for Beyond Commerce and Ooma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beyond Commerce	0	0	0	0	0.00
Ooma	0	1	4	0	2.80

Ooma has a consensus price target of $15.25, indicating a potential upside of 2.21%. Given Ooma’s stronger consensus rating and higher probable upside, analysts clearly believe Ooma is more favorable than Beyond Commerce.

Institutional and Insider Ownership

80.4% of Ooma shares are held by institutional investors. 1.0% of Beyond Commerce shares are held by insiders. Comparatively, 9.8% of Ooma shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Ooma beats Beyond Commerce on 11 of the 12 factors compared between the two stocks.

About Beyond Commerce

Beyond Commerce, Inc. engages in the business-to-business Internet marketing technology and services, and information management market businesses. It offers content, business process management, customer feedback management, customer experience management, business network, and BYOC analytics services. The company was formerly known as BOOMj, Inc. and changed its name to Beyond Commerce, Inc. in February 2009. Beyond Commerce, Inc. is based in Las Vegas, Nevada.

About Ooma

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Connect, which delivers fixed wireless internet connectivity; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution. It also provides Ooma AirDial, a plain old telephone service; PureVoice HD, a residential phone services; Ooma basic that provides unlimited personal calling within the United States; and Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis. In addition, the company offers Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; and Ooma Telo LTE, which combines the Ooma Telo base station with the Ooma LTE Adapter and battery back-up. Further, it provides Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; 2600Hz provides business communication applications; Talkatone mobile app; and OnSIP, an UCaaS solutions. The company offers its products through direct sales, distributors, retailers, and resellers, as well as online and sale representatives. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.