Reviewing Sangoma Technologies (NASDAQ:SANG) and Weibo (NASDAQ:WB)

Weibo (NASDAQ:WB) and Sangoma Technologies (NASDAQ:SANG) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Weibo has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Institutional & Insider Ownership

68.8% of Weibo shares are held by institutional investors. Comparatively, 39.7% of Sangoma Technologies shares are held by institutional investors. 41.3% of Weibo shares are held by insiders. Comparatively, 14.0% of Sangoma Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weibo	21.30%	11.03%	5.35%
Sangoma Technologies	-2.81%	-2.61%	-1.72%

Analyst Ratings

This is a summary of recent ratings and target prices for Weibo and Sangoma Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weibo	1	2	1	0	2.00
Sangoma Technologies	0	0	1	1	3.50

Weibo currently has a consensus target price of $9.75, indicating a potential upside of 0.83%. Sangoma Technologies has a consensus target price of $11.00, indicating a potential upside of 88.20%. Given Sangoma Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Sangoma Technologies is more favorable than Weibo.

Valuation & Earnings

This table compares Weibo and Sangoma Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weibo	$1.76 billion	1.34	$342.60 million	$1.38	7.01
Sangoma Technologies	$238.26 million	0.82	-$8.66 million	($0.21)	-27.83

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

Summary

Weibo beats Sangoma Technologies on 10 of the 14 factors compared between the two stocks.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, discover, and distribute content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express promoted feeds, as well as promoted trends and search products that appear alongside user’s trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product services for better displaying and promotion of its account and content; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, the People’s Republic of China.

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.