Critical Contrast: Sonic Foundry (SOFO) vs. The Competition

Sonic Foundry (OTCMKTS:SOFOGet Rating) is one of 64 publicly-traded companies in the “Radio & t.v. communications equipment” industry, but how does it weigh in compared to its rivals? We will compare Sonic Foundry to similar companies based on the strength of its profitability, earnings, valuation, dividends, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

46.1% of shares of all “Radio & t.v. communications equipment” companies are owned by institutional investors. 49.7% of Sonic Foundry shares are owned by insiders. Comparatively, 20.2% of shares of all “Radio & t.v. communications equipment” companies 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sonic Foundry and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonic Foundry 0 0 0 0 N/A
Sonic Foundry Competitors 441 1976 2689 130 2.48

As a group, “Radio & t.v. communications equipment” companies have a potential upside of 39.39%. Given Sonic Foundry’s rivals higher possible upside, analysts plainly believe Sonic Foundry has less favorable growth aspects than its rivals.

Profitability

This table compares Sonic Foundry and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonic Foundry 2.76% 25.72% 4.38%
Sonic Foundry Competitors -175.76% -3,520.87% 0.98%

Volatility and Risk

Sonic Foundry has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500. Comparatively, Sonic Foundry’s rivals have a beta of 1.12, meaning that their average share price is 12% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sonic Foundry and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sonic Foundry $35.17 million $3.08 million 18.17
Sonic Foundry Competitors $3.57 billion $445.41 million 22.95

Sonic Foundry’s rivals have higher revenue and earnings than Sonic Foundry. Sonic Foundry is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Sonic Foundry rivals beat Sonic Foundry on 6 of the 10 factors compared.

About Sonic Foundry (Get Rating)

Sonic Foundry, Inc. provides video enterprise solutions and services for the digital-first, distance learning, and corporate communication markets in the United States, Europe, the Middle East, Asia, and internationally. The company offers Mediasite Video platform that automates to capture, management, delivery, and search of live and on-demand streaming video; and Mediasite Cloud, a Software as a Service solution to host and manage customers' content. It also provides Mediasite Video Capture solutions, including Mediasite Recorder and Recorder Pro that are built-in room appliances used in schedule-based capture and advanced audio/video integration; Mediasite Mobile Recorders, a portable recording devices used to capture and stream broadcast-quality video; Mediasite Mosaic that allows instructors, employees, and students to create videos, screencasts, and slideshows from their computers or mobile devices; and Mediasite Catch, a video capture software solution for classrooms. In addition, the company offers Mediasite Video Management and Delivery solutions to manage, search, analyze, publish, and stream video content. It markets its products to educational institutions, corporations, and government entities through reseller networks, direct sales, and partnerships with system integrators. The company was founded in 1991 and is headquartered in Madison, Wisconsin.

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