Critical Contrast: Ooma (NYSE:OOMA) & Glory Star New Media Group (NASDAQ:GSMG)

Ooma (NYSE:OOMA) and Glory Star New Media Group (NASDAQ:GSMG) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

80.4% of Ooma shares are held by institutional investors. Comparatively, 10.9% of Glory Star New Media Group shares are held by institutional investors. 9.8% of Ooma shares are held by insiders. Comparatively, 41.7% of Glory Star New Media Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Ooma and Glory Star New Media Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ooma	$236.74 million	1.28	-$830,000.00	($0.10)	-112.90
Glory Star New Media Group	$154.58 million	1.02	$26.89 million	N/A	N/A

Glory Star New Media Group has lower revenue, but higher earnings than Ooma.

Profitability

This table compares Ooma and Glory Star New Media Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ooma	-2.04%	-2.22%	-1.13%
Glory Star New Media Group	N/A	N/A	N/A

Risk and Volatility

Ooma has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Glory Star New Media Group has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Ooma and Glory Star New Media Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ooma	0	1	4	0	2.80
Glory Star New Media Group	0	0	0	0	N/A

Ooma currently has a consensus target price of $14.50, suggesting a potential upside of 28.43%. Given Ooma’s higher possible upside, research analysts plainly believe Ooma is more favorable than Glory Star New Media Group.

Summary

Ooma beats Glory Star New Media Group on 6 of the 11 factors compared between the two stocks.

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.

About Glory Star New Media Group

Glory Star New Media Group Holdings Limited, through its subsidiaries, provides advertisement and content production services in the People's Republic of China. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an e-commerce platform that allows users to access online store, live streaming, series TV shows, and online games, as well as online short videos, variety shows, and dramas. It is also developing CheerCar App, an interactive entertainment app; CheerReal, a digital collection NFT app; and CheerChat App, an overseas social audio app. Glory Star New Media Group Holdings Limited was founded in 2016 and is headquartered in Beijing, the People's Republic of China.