AppLovin (NYSE:APP) vs. Sangoma Technologies (NASDAQ:SANG) Financial Analysis

AppLovin (NYSE:APP) and Sangoma Technologies (NASDAQ:SANG) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Earnings and Valuation

This table compares AppLovin and Sangoma Technologies’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppLovin	$2.82 billion	5.28	-$192.75 million	$0.30	142.67
Sangoma Technologies	$252.53 million	0.23	-$29.03 million	($0.89)	-2.73

Sangoma Technologies has lower revenue, but higher earnings than AppLovin. Sangoma Technologies is trading at a lower price-to-earnings ratio than AppLovin, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AppLovin and Sangoma Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AppLovin	3.46%	11.48%	3.31%
Sangoma Technologies	-11.73%	-2.52%	-1.53%

Insider and Institutional Ownership

41.9% of AppLovin shares are held by institutional investors. Comparatively, 59.0% of Sangoma Technologies shares are held by institutional investors. 12.4% of AppLovin shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

AppLovin has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for AppLovin and Sangoma Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppLovin	1	3	12	0	2.69
Sangoma Technologies	0	3	2	0	2.40

AppLovin presently has a consensus target price of $44.00, suggesting a potential upside of 2.80%. Sangoma Technologies has a consensus target price of $4.83, suggesting a potential upside of 98.90%. Given Sangoma Technologies’ higher possible upside, analysts clearly believe Sangoma Technologies is more favorable than AppLovin.

Summary

AppLovin beats Sangoma Technologies on 11 of the 14 factors compared between the two stocks.

About AppLovin

AppLovin Corporation engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; Adjust, an analytics platform that helps marketers grow their mobile apps with solutions for measuring, optimizing campaigns, and protecting user data; MAX, an in-app bidding software that optimizes the value of an app's advertising inventory by running a real-time competitive auction; and Wurl, a connected TV platform, which primarily distributes streaming video for content companies. Its business clients include various advertisers, internet platforms, and others. The company was incorporated in 2011 and is headquartered in Palo Alto, California.

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.