Ooma (NYSE:OOMA – Get Free Report) and ClearOne (NASDAQ:CLRO – Get Free Report) 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 risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Institutional and Insider Ownership
80.4% of Ooma shares are held by institutional investors. Comparatively, 9.6% of ClearOne shares are held by institutional investors. 9.9% of Ooma shares are held by insiders. Comparatively, 0.6% of ClearOne shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Ooma and ClearOne”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ooma | $256.85 million | 1.29 | -$6.90 million | ($0.19) | -63.08 |
| ClearOne | $11.39 million | 0.66 | -$8.98 million | ($6.15) | -0.70 |
Ooma has higher revenue and earnings than ClearOne. Ooma is trading at a lower price-to-earnings ratio than ClearOne, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Ooma and ClearOne, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ooma | 0 | 1 | 4 | 0 | 2.80 |
| ClearOne | 0 | 0 | 0 | 0 | 0.00 |
Ooma currently has a consensus target price of $17.6250, suggesting a potential upside of 47.06%. Given Ooma’s stronger consensus rating and higher probable upside, equities analysts clearly believe Ooma is more favorable than ClearOne.
Profitability
This table compares Ooma and ClearOne’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% |
| ClearOne | -120.46% | -58.11% | -44.48% |
Risk and Volatility
Ooma has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, ClearOne has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.
Summary
Ooma beats ClearOne on 13 of the 14 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 ClearOne
ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, and network streaming solutions for voice and visual communications in the United States and internationally. The company offers a range of audio conferencing products, including professional audio conferencing and sound-reinforcement products for use in enterprise, healthcare, education and distance learning, government, legal, and finance organizations; mid-tier premium conferencing products for smaller rooms, and small and medium businesses, which interface with video and Web conferencing systems; USB-based personal and group speakerphones that could be used with PCs, laptops, tablets, smartphones, and other portable devices; and traditional tabletop conferencing phones used in conference rooms and offices. It provides professional microphones consisting of beamforming microphones, ceiling microphones, and wireless microphones. In addition, the company offers video products, such as video conferencing and collaboration solutions; professional-grade cameras; and AV networking, which deliver the IP A/V experience by streaming time sensitive high definition audio and video, and control over TCP/IP networks. It sells its commercial products to a network of independent professional audiovisual, information technology, and telecommunications distributors, as well as systems integrators, dealers, value-added resellers, and end-users. ClearOne, Inc. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
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