Financial Survey: Ooma (NYSE:OOMA) and Powerstorm (OTCMKTS:PSTO)

Ooma (NYSE:OOMA) and Powerstorm (OTCMKTS:PSTO) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares Ooma and Powerstorm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ooma	-1.89%	2.72%	1.54%
Powerstorm	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ooma and Powerstorm, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ooma	0	1	4	0	2.80
Powerstorm	0	0	0	0	0.00

Ooma currently has a consensus target price of $17.63, suggesting a potential upside of 59.50%. Given Ooma’s stronger consensus rating and higher possible upside, analysts plainly believe Ooma is more favorable than Powerstorm.

Risk and Volatility

Ooma has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Powerstorm has a beta of -1.7, suggesting that its share price is 270% less volatile than the S&P 500.

Insider and Institutional Ownership

80.4% of Ooma shares are held by institutional investors. 9.9% of Ooma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ooma and Powerstorm”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ooma	$256.85 million	1.19	-$6.90 million	($0.19)	-58.16
Powerstorm	N/A	N/A	N/A	N/A	N/A

Powerstorm has lower revenue, but higher earnings than Ooma.

Summary

Ooma beats Powerstorm on 9 of the 10 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 Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.