Head to Head Review: Altice USA (NYSE:ATUS) and Ooma (NYSE:OOMA)

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

Institutional & Insider Ownership

80.4% of Ooma shares are held by institutional investors. Comparatively, 54.8% of Altice USA shares are held by institutional investors. 9.9% of Ooma shares are held by company insiders. Comparatively, 44.6% of Altice USA 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ooma and Altice USA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ooma	0	1	2	0	2.67
Altice USA	3	1	2	0	1.83

Ooma currently has a consensus price target of $19.00, suggesting a potential upside of 59.81%. Altice USA has a consensus price target of $2.55, suggesting a potential upside of 42.46%. Given Ooma’s stronger consensus rating and higher probable upside, research analysts clearly believe Ooma is more favorable than Altice USA.

Valuation and Earnings

This table compares Ooma and Altice USA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ooma	$256.85 million	1.28	-$6.90 million	$0.07	169.84
Altice USA	$8.64 billion	0.10	-$102.92 million	($3.96)	-0.45

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

Volatility & Risk

Ooma has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Altice USA has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ooma	0.85%	10.81%	6.32%
Altice USA	-21.43%	N/A	-0.90%

Summary

Ooma beats Altice USA on 10 of the 13 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 Altice USA

Altice USA, Inc., together with its subsidiaries, provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. It offers broadband, video, telephony, and mobile services to residential and business customers. The company's video services include delivery of broadcast stations and cable networks; over the top services; video-on-demand, high-definition channels, digital video recorder, and pay-per-view services; and platforms for video programming through mobile applications. In addition, it provides voice over Internet protocol telephone services; and mobile services, such as data, talk, and text. Further, the company offers Ethernet, data transport, IP-based virtual private networks, Internet access, and telephony services; hosted telephony services, managed Wi-Fi, managed desktop and server backup, and collaboration services comprising audio and web conferencing; fiber-to-the-tower services to wireless carriers; data services consisting of wide area networking and dedicated data access, as well as wireless mesh networks; and enterprise class telephone services that include traditional multi-line phone service. Additionally, it provides hosted private branch exchange, network security, and international calling and toll-free numbers services. Furthermore, the company offers audience-based and multiscreen advertising solutions; data analytics; and news programming services, as well as operates news channels under the News 12 Networks, Cheddar, and i24NEWS names. It also provides broadband communications and video services under the Optimum and Suddenlink brands. Altice USA, Inc. was incorporated in 2015 and is headquartered in Long Island City, New York.