Financial Contrast: Sonic Foundry (SOFO) versus CalAmp (CAMP)

Sonic Foundry (NASDAQ:SOFO) and CalAmp (NASDAQ:CAMP) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Volatility and Risk

Sonic Foundry has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, CalAmp has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Sonic Foundry and CalAmp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonic Foundry 0 0 0 0 N/A
CalAmp 0 5 5 0 2.50

CalAmp has a consensus price target of $22.13, suggesting a potential upside of 64.87%. Given CalAmp’s higher probable upside, analysts plainly believe CalAmp is more favorable than Sonic Foundry.

Earnings and Valuation

This table compares Sonic Foundry and CalAmp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonic Foundry $36.00 million 0.13 -$5.03 million N/A N/A
CalAmp $365.91 million 1.26 $16.61 million $0.92 14.59

CalAmp has higher revenue and earnings than Sonic Foundry.

Institutional and Insider Ownership

13.1% of Sonic Foundry shares are held by institutional investors. Comparatively, 78.5% of CalAmp shares are held by institutional investors. 26.4% of Sonic Foundry shares are held by company insiders. Comparatively, 5.4% of CalAmp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sonic Foundry and CalAmp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonic Foundry -10.87% -258.54% -16.66%
CalAmp 0.63% 15.40% 5.73%

Summary

CalAmp beats Sonic Foundry on 10 of the 11 factors compared between the two stocks.

About Sonic Foundry

Sonic Foundry, Inc. provides enterprise solutions and services for the Web communications market in the United States and internationally. It offers Mediasite Video Platform, an on-premises solution to publish, stream, manage, search, and analyze videos; and Mediasite Video Cloud, a solution, which provides hosting and management of content. The company also provides Mediasite Capture Solutions comprising My Mediasite that makes a snap for instructors, employees, and students to create videos, screencasts, and slideshows from their computers or mobile devices; Mediasite RL Recorders that are a series of built-in room appliances for use in recording video and content; Mediasite RL Mini, which builds/expands an automated lecture capture programs in community colleges, vocational-tech schools, small departments, and K12 classrooms; Mediasite Catch, a video capture solution to extend video capture to various classrooms on campus; Mediasite ML Recorders, a video producer with portable recording solutions to capture and stream broadcast-quality video; and Mediasite Join that captures and preserves video calls or meetings. In addition, it provides Mediasite Events, which offers live and on-demand Webcasting for conferences, hybrid events, and high-profile broadcasts; Mediasite Services comprising advanced integration, installation, and training services; and Mediasite Customer care that provides software upgrades and updates, technical support assistance, hardware warranty extension, Mediasite Recorder replacement, and access to the Mediasite Customer care Portal and Mediasite Community. The company markets its products to educational institutions, corporations, and government entities through reseller networks, direct sales, and partnerships with system integrators. Sonic Foundry, Inc. was founded in 1991 and is headquartered in Madison, Wisconsin.

About CalAmp

CalAmp Corp. provides in telematics systems, and software and subscription services worldwide. The company provides mobile resource management telematics devices for the Internet of Things market, which enable customers to optimize their operations by collecting, monitoring, and reporting business-critical information and desired intelligence from remote and mobile assets. It also offers a portfolio of wireless networking products, including asset tracking units, mobile telematics devices, and fixed and mobile wireless gateways and routers; telematics cloud platform applications; and software as a service applications. The company sells its products and services to customers in the transportation, government, construction, and automotive markets through direct sales organization, a network of licensees, and sales representatives, as well as through Websites and digital presence. CalAmp Corp. was founded in 1981 and is headquartered in Irvine, California.

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