Critical Survey: Sonic Foundry (SOFO) and Loral Space & Communications Ltd. (LORL)

Sonic Foundry (NASDAQ:SOFO) and Loral Space & Communications Ltd. (NASDAQ:LORL) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Sonic Foundry and Loral Space & Communications Ltd., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonic Foundry 0 0 0 0 N/A
Loral Space & Communications Ltd. 0 0 0 0 N/A

Institutional & Insider Ownership

13.1% of Sonic Foundry shares are owned by institutional investors. Comparatively, 66.8% of Loral Space & Communications Ltd. shares are owned by institutional investors. 26.4% of Sonic Foundry shares are owned by company insiders. Comparatively, 40.6% of Loral Space & Communications Ltd. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Sonic Foundry has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Loral Space & Communications Ltd. has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sonic Foundry and Loral Space & Communications Ltd.’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 0.17 -$5.03 million N/A N/A
Loral Space & Communications Ltd. N/A N/A $134.46 million N/A N/A

Loral Space & Communications Ltd. has lower revenue, but higher earnings than Sonic Foundry.

Profitability

This table compares Sonic Foundry and Loral Space & Communications Ltd.’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%
Loral Space & Communications Ltd. N/A 31.27% 24.34%

Summary

Loral Space & Communications Ltd. beats Sonic Foundry on 7 of the 8 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 Loral Space & Communications Ltd.

Loral Space & Communications Inc., a satellite communications company, provides satellite-based communications services to broadcast, telecom, corporate, and government customers worldwide. As of December 31, 2017, the company provided satellite services to its customers through a fleet of 15 in-orbit satellites; and owns the Canadian Ka-band payload on the ViaSat-1 satellite. It also offers video distribution and direct-to-home (DTH) video, as well as end-to-end communications services using satellite and hybrid satellite-ground networks; and broadcast services, including DTH, video distribution and contribution, and satellite transmission services for the broadcast of video news, sports, and live event coverage. In addition, the company provides telecommunication carrier and integrator services; satellite services to the Canadian Government; two-way broadband Internet services; communications services to the on and off shore oil and gas, and mining industries; maritime and aeronautical services; and satellite operator services. Further, it is involved in the installation and maintenance of the end user terminal; maintenance of the VSAT hub; and provision of satellite capacity. Additionally, the company offers consulting services related to space and earth, government studies, satellite control services, and research and development; and X-band communications services to the United States, Spanish, and allied government users. Loral Space & Communications Inc. was founded in 1996 and is based in New York, New York.

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