Financial Analysis: MER Telemanagement Solutions (MTSL) and AltiGen Communications (ATGN)

MER Telemanagement Solutions (NASDAQ:MTSL) and AltiGen Communications (OTCMKTS:ATGN) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Insider & Institutional Ownership

0.9% of MER Telemanagement Solutions shares are owned by institutional investors. 59.1% of MER Telemanagement Solutions shares are owned by company insiders. Comparatively, 14.0% of AltiGen Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for MER Telemanagement Solutions and AltiGen Communications, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MER Telemanagement Solutions 0 0 0 0 N/A
AltiGen Communications 0 0 0 0 N/A

Valuation and Earnings

This table compares MER Telemanagement Solutions and AltiGen Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MER Telemanagement Solutions $5.86 million 0.57 -$1.17 million N/A N/A
AltiGen Communications $10.00 million 2.63 $9.84 million N/A N/A

AltiGen Communications has higher revenue and earnings than MER Telemanagement Solutions.

Volatility and Risk

MER Telemanagement Solutions has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500. Comparatively, AltiGen Communications has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.

Profitability

This table compares MER Telemanagement Solutions and AltiGen Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MER Telemanagement Solutions N/A N/A N/A
AltiGen Communications 96.62% 148.23% 102.20%

Summary

AltiGen Communications beats MER Telemanagement Solutions on 6 of the 9 factors compared between the two stocks.

MER Telemanagement Solutions Company Profile

Mer Telemanagement Solutions Ltd. provides solutions for telecommunications expense management (TEM), and CA and enterprise mobility management worldwide. It offers TEM suite software platform that helps organizations to reduce operational expenses, enhance productivity, and optimize networks and services associated with communications networks and information technology (IT). The company also provides TEM services, such as Map-to-Wins, a strategic consulting approach for TEM solution; and consulting services, including invoice, inventory audit and recovery, contract negotiations and strategic sourcing, discovery and road mapping, process diagnosis and solution design, and wireless optimization services, as well as creation and implementation of IT governance, risk, and compliance policies. In addition, the company offers cloud and managed services; and converged billing solutions, including applications for charging and invoicing customers, and interconnect billing and partner revenue management services, which are implemented by wireless providers, voice over Internet protocol, Internet protocol television, MVNO, and content service providers. Further, it provides implementation and maintenance services. The company sells its solutions through original equipment manufacturers, distribution channels, and direct sales force. Mer Telemanagement Solutions Ltd. was founded in 1995 and is headquartered in Ra'anana, Israel.

AltiGen Communications Company Profile

Altigen Communications, Inc. designs, delivers, and supports Voice over Internet Protocol (VoIP) phone systems and call center solutions worldwide. The company offers MaxCommunications Server (MaxCS) IP-PBX, a software-based phone system that provides customers with business communications solutions; MaxACD VoIP Contact Center, a software-based automatic call distribution engine, which offers call routing and call distribution options; MaxMobile that extends a set of business PBX functionality to smart phone devices; and MaxCommunicator, a Windows-based desktop application, which provides call control and visual voice mail management to the desktop. It also offers MaxAgent, a Windows-based desktop application to bring call control and workgroup information to call center agents; MaxSupervisor, a Windows-based desktop application for call center supervisors; and MaxACD for Lync, a call center solution. In addition, the company provides hosted services; and service support programs, which offer customers with updates, patches, new releases, and technical support for the applications they are licensed to use. It sells its products to small-to-medium sized and multi-site businesses, corporate branch offices, call centers, credit unions, and community banks through a channel of distributors and resellers. Altigen Communications, Inc. was founded in 1994 and is headquartered in San Jose, California.

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