Analyzing Sonic Foundry (SOFO) and Its Rivals

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

Institutional & Insider Ownership

48.9% of shares of all “Radio & t.v. communications equipment” companies are held by institutional investors. 45.1% of Sonic Foundry shares are held by insiders. Comparatively, 20.5% of shares of all “Radio & t.v. communications equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sonic Foundry and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sonic Foundry $35.17 million $3.08 million 17.67
Sonic Foundry Competitors $3.57 billion $446.02 million 23.55

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

Risk and Volatility

Sonic Foundry has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500. Comparatively, Sonic Foundry’s peers have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Profitability

This table compares Sonic Foundry and its peers’ 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 -175.78% -3,521.37% 0.92%

Analyst Ratings

This is a summary of recent recommendations and price targets for Sonic Foundry and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonic Foundry 0 0 0 0 N/A
Sonic Foundry Competitors 443 1978 2691 130 2.48

As a group, “Radio & t.v. communications equipment” companies have a potential upside of 33.35%. Given Sonic Foundry’s peers higher possible upside, analysts clearly believe Sonic Foundry has less favorable growth aspects than its peers.

Summary

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

Sonic Foundry Company Profile (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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