GigaMedia (NASDAQ:GIGM – Get Free Report) and Sangoma Technologies (NASDAQ:SANG – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
Profitability
This table compares GigaMedia and Sangoma Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GigaMedia | -109.81% | -8.94% | -8.37% |
| Sangoma Technologies | -12.23% | -3.07% | -1.89% |
Analyst Recommendations
This is a breakdown of recent ratings for GigaMedia and Sangoma Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GigaMedia | 0 | 0 | 0 | 0 | N/A |
| Sangoma Technologies | 0 | 3 | 1 | 0 | 2.25 |
Valuation & Earnings
This table compares GigaMedia and Sangoma Technologies’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GigaMedia | $4.29 million | 3.32 | -$3.40 million | ($0.37) | -3.49 |
| Sangoma Technologies | $252.53 million | 0.50 | -$29.03 million | ($0.93) | -5.65 |
GigaMedia has higher earnings, but lower revenue than Sangoma Technologies. Sangoma Technologies is trading at a lower price-to-earnings ratio than GigaMedia, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
13.5% of GigaMedia shares are held by institutional investors. Comparatively, 39.7% of Sangoma Technologies shares are held by institutional investors. 1.0% of GigaMedia shares are held by insiders. Comparatively, 14.0% of Sangoma Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
GigaMedia has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Summary
Sangoma Technologies beats GigaMedia on 9 of the 13 factors compared between the two stocks.
About GigaMedia
GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan and Hong Kong. It operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games through branded platform. The company offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. It also provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. The company was founded in 1998 and is headquartered in Taipei, Taiwan.
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.
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