Beyond Commerce (OTCMKTS:BYOC) versus Ooma (NYSE:OOMA) Critical Review

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

Valuation & Earnings

This table compares Ooma and Beyond Commerce”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ooma	$236.74 million	1.68	-$830,000.00	($0.19)	-77.89
Beyond Commerce	$3.56 million	0.93	-$2.28 million	N/A	N/A

Ooma has higher revenue and earnings than Beyond Commerce.

Analyst Recommendations

This is a summary of current ratings and price targets for Ooma and Beyond Commerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ooma	0	1	4	0	2.80
Beyond Commerce	0	0	0	0	0.00

Ooma presently has a consensus price target of $14.75, indicating a potential downside of 0.34%. Given Ooma’s stronger consensus rating and higher possible upside, research analysts clearly believe Ooma is more favorable than Beyond Commerce.

Institutional & Insider Ownership

80.4% of Ooma shares are owned by institutional investors. 9.8% of Ooma shares are owned by company insiders. Comparatively, 1.0% of Beyond Commerce shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Ooma and Beyond Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ooma	-2.04%	-2.22%	-1.13%
Beyond Commerce	-80.93%	N/A	-66.09%

Risk and Volatility

Ooma has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Beyond Commerce has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500.

Summary

Ooma beats Beyond Commerce on 11 of the 12 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 Beyond Commerce

Beyond Commerce, Inc. engages in the business-to-business Internet marketing technology and services, and information management market businesses. It offers content, business process management, customer feedback management, customer experience management, business network, and BYOC analytics services. The company was formerly known as BOOMj, Inc. and changed its name to Beyond Commerce, Inc. in February 2009. Beyond Commerce, Inc. is based in Las Vegas, Nevada.