Auddia (NASDAQ:AUUD) and Ooma (NYSE:OOMA) Critical Contrast

Auddia (NASDAQ:AUUD – Get Rating) and Ooma (NYSE:OOMA – Get Rating) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Risk & Volatility

Auddia has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Ooma has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Auddia and Ooma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auddia	0	0	0	0	N/A
Ooma	0	0	2	0	3.00

Ooma has a consensus target price of $20.25, suggesting a potential upside of 60.97%. Given Ooma’s higher possible upside, analysts clearly believe Ooma is more favorable than Auddia.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Auddia	N/A	-99.84%	-95.60%
Ooma	-1.69%	-0.98%	-0.47%

Insider and Institutional Ownership

8.6% of Auddia shares are held by institutional investors. Comparatively, 80.1% of Ooma shares are held by institutional investors. 27.7% of Auddia shares are held by company insiders. Comparatively, 8.5% of Ooma shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Auddia and Ooma’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auddia	$110,000.00	113.82	-$14.01 million	N/A	N/A
Ooma	$216.16 million	1.44	-$3.65 million	($0.15)	-83.87

Ooma has higher revenue and earnings than Auddia.

Summary

Ooma beats Auddia on 7 of the 11 factors compared between the two stocks.

About Auddia

(Get Rating)

Auddia Inc., a technology company, develops software products for the audio and podcast markets. The company's flagship product is Faidr, a subscription based mobile application that enables users to listen to various streaming AM/FM radio stations without commercials. It also provides Vodacast, an interactive podcasting platform and application; and Vodcast Hub, a content management system. The company was formerly known as Clip Interactive, LLC and changed its name to Auddia Inc. in November 2019. Auddia Inc. was founded in 2012 and is headquartered in Boulder, Colorado.

About Ooma

(Get Rating)

Ooma, Inc. engages in the provision of platforms for cloud-based communications solutions, smart security and other connected services. It helps create smart workplaces and homes by providing communications, monitoring, security, automation, productivity, and networking infrastructure applications. Its products and services include Ooma business and Ooma residential. Ooma business offers small business phone services and enterprise communications. Ooma residential deals with phone services and smart security, and the Talkatone mobile app. The company was founded by Andrew Frame, Dennis Peng and Michael Cerda on November 19, 2003 and is headquartered in Sunnyvale, CA.