Ooma (NYSE:OOMA – Get Free Report) and Aware (NASDAQ:AWRE – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Profitability
This table compares Ooma and Aware’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ooma | 3.57% | 23.55% | 10.65% |
| Aware | -52.60% | -36.87% | -25.29% |
Valuation and Earnings
This table compares Ooma and Aware”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ooma | $273.60 million | 1.82 | $6.46 million | $0.38 | 47.38 |
| Aware | $17.29 million | 1.23 | -$5.87 million | ($0.39) | -2.49 |
Ooma has higher revenue and earnings than Aware. Aware is trading at a lower price-to-earnings ratio than Ooma, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ooma has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Aware has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
Institutional and Insider Ownership
80.4% of Ooma shares are owned by institutional investors. Comparatively, 24.4% of Aware shares are owned by institutional investors. 9.9% of Ooma shares are owned by insiders. Comparatively, 34.3% of Aware shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Ooma and Aware, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ooma | 0 | 2 | 6 | 0 | 2.75 |
| Aware | 1 | 0 | 0 | 0 | 1.00 |
Ooma currently has a consensus price target of $25.00, suggesting a potential upside of 38.84%. Given Ooma’s stronger consensus rating and higher possible upside, research analysts plainly believe Ooma is more favorable than Aware.
Summary
Ooma beats Aware on 12 of the 14 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 Aware
Aware, Inc., an authentication company, provides biometrics software products and solutions for government agencies and commercial entities in the United States, the United Kingdom, and internationally. The company offers biometric software solution, including Knomi, a mobile biometric framework which provides multiple biometric modality options; AwareABIS, an automated biometric identification system used for large-scale biometric identification and deduplication; AFIX suite used for small-scale law enforcement focused biometric identification; and AFIX Tracker for fingerprint, palmprint, and latent print identification, as well as AFIX Face, AFIX Verifier, AFIX Identifier, AFIX Comparator, AFIX Engine, and AFIX NIST Transaction Engine. It also provides BioSP, a biometric integration platform-as-a-service that enables biometric data processing and management functionality in a web services architecture; WebEnroll, a browser-based biometric enrollment and data management solution; and AwareID, a software-as-a-service that provides identity verification and continuous authentication capabilities. In addition, the company offers biometrics applications, such as Nexa line, a biometric search and match SDKs including Nexa Fingerprint, Nexa Face, Nexa Iris, and Nexa Voice; and AwareXM, an interoperable fingerprint matching SDK that provides fingerprint minutiae extraction, template generation, and fingerprint authentication. Further, it sells imaging products used in medical and advanced imaging application; and offers software maintenance, program management, and software engineering services. The company sells its products, services, and solutions through systems integrators, direct, and original equipment manufacturers and value added resellers channel. Aware, Inc. was incorporated in 1986 and is headquartered in Burlington, Massachusetts.
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