Ooma (NYSE:OOMA) and Zendesk (NYSE:ZEN) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
76.1% of Ooma shares are held by institutional investors. Comparatively, 95.8% of Zendesk shares are held by institutional investors. 10.2% of Ooma shares are held by insiders. Comparatively, 4.6% of Zendesk shares are held by 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.
This is a summary of current ratings and recommmendations for Ooma and Zendesk, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ooma presently has a consensus price target of $18.63, indicating a potential upside of 34.48%. Zendesk has a consensus price target of $95.19, indicating a potential upside of 27.52%. Given Ooma’s higher possible upside, research analysts plainly believe Ooma is more favorable than Zendesk.
Volatility and Risk
Ooma has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Zendesk has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
This table compares Ooma and Zendesk’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Ooma and Zendesk’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ooma||$129.23 million||2.26||-$14.57 million||($0.69)||-20.07|
|Zendesk||$598.75 million||13.99||-$131.08 million||($0.95)||-78.58|
Ooma has higher earnings, but lower revenue than Zendesk. Zendesk is trading at a lower price-to-earnings ratio than Ooma, indicating that it is currently the more affordable of the two stocks.
Zendesk beats Ooma on 8 of the 14 factors compared between the two stocks.
Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company's smart cloud-based SaaS platform serves as a communications hub, which offers cloud-based communications solutions, smart security, and other connected services. Its business and residential solutions deliver PureVoice high-definition voice quality, advanced functionality, and integration with mobile devices; and platform helps to create smart workplace and homes by offering communications, monitoring, security, automation, productivity, and networking infrastructure applications. The company's products and services include Ooma Office, a multi-user communications system that provides everything needed to manage communications in and out of the office for small businesses; Ooma Office Mobile HD app to make, receive, and transfer phone calls; and Ooma Enterprise, an unified-communications-as-a-service. It also provides Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a solution that connects to the Internet wirelessly using the home's Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from any phone in the home; and Ooma HD3 cordless handset. In addition, the company offers Ooma Premier Service, a suite of advanced calling features to enhance the capabilities of Ooma Telo; and Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings with iOS or Android device over a Wi-Fi or cellular data connection. Further, it provides Ooma Smart Security, a security and monitoring platform; Ooma Smart Cam, an indoor/outdoor high-definition video security camera; and Talkatone mobile app. The company offers its products through direct sales, retailers, distributors, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.
Zendesk, Inc., a software development company, provides SaaS products for organizations. Its flagship product is Zendesk Support, a system for tracking, prioritizing, and solving customer support tickets across various channels. The company also offers Zendesk Chat, a live chat software to connect with customers on Websites, applications, and mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Guide, a knowledge base that powers customer self-service and support agent productivity; Zendesk Sell, a sales force automation software to enhance productivity, processes, and pipeline visibility for sales teams; Zendesk Connect that manages customer communication across channels; and Zendesk Explore, which provides analytics for businesses to measure and enhance the customer experience. In addition, it provides Zendesk Sunshine, a customer relationship management platform; Zendesk Embeddables, which allow developers to embed support, chat, and guide experiences on the Web and within mobile applications; and Zendesk application platform interfaces and Apps. The company has operations in North America, Latin America, Europe, the Middle East, Africa, Australia, Asia, and South America. Zendesk, Inc. was founded in 2007 and is headquartered in San Francisco, California.
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