Sangoma Technologies (NASDAQ:SANG) vs. Mobivity (OTCMKTS:MFON) Financial Analysis

Mobivity (OTCMKTS:MFON) and Sangoma Technologies (NASDAQ:SANG) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mobivity	N/A	N/A	N/A
Sangoma Technologies	-3.04%	-2.26%	-1.71%

Analyst Recommendations

This is a breakdown of recent ratings for Mobivity and Sangoma Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobivity	0	0	0	0	0.00
Sangoma Technologies	1	2	1	0	2.00

Sangoma Technologies has a consensus target price of $4.00, indicating a potential downside of 0.25%. Given Sangoma Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Sangoma Technologies is more favorable than Mobivity.

Valuation & Earnings

This table compares Mobivity 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
Mobivity	$1.14 million	2.27	-$10.23 million	($0.12)	-0.29
Sangoma Technologies	$236.69 million	0.56	-$5.01 million	($0.19)	-21.11

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

Institutional and Insider Ownership

12.9% of Mobivity shares are held by institutional investors. Comparatively, 39.6% of Sangoma Technologies shares are held by institutional investors. 50.6% of Mobivity shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Mobivity has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

About Mobivity

Mobivity Holdings Corp. engages in developing and operating proprietary platforms to conduct national and localized, and data-driven marketing campaigns in the United States. The company's Recurrency platform unlocks valuable point of sale systems (POS) and mobile data to help transform customer transactions into actionable and attributable marketing insights and power Connected Rewards interactions. It also operates as a Software-as-a-Service platform used by convenience and quick service restaurant brands to build and engage with their customers; and enables and powers incentivized programs in digital environments. In addition, its platform offers POS data capture, analytics, offers and promotions, predictive offers, personalized receipt promotions, customized mobile messaging, belly loyalty, and other services. It markets and sells its services through direct sales, resellers, and agents, as well as online through its website. The company is based in Chandler, Arizona.

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.