Head to Head Survey: Sonic Foundry (SOFO) vs. Its Rivals

Sonic Foundry (NASDAQ:SOFO) is one of 48 publicly-traded companies in the “Radio & t.v. communications equipment” industry, but how does it contrast to its competitors? We will compare Sonic Foundry to related companies based on the strength of its dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sonic Foundry and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonic Foundry	0	0	1	0	3.00
Sonic Foundry Competitors	352	1589	2579	114	2.53

Sonic Foundry currently has a consensus target price of $3.00, indicating a potential upside of 298.94%. As a group, “Radio & t.v. communications equipment” companies have a potential upside of 16.28%. Given Sonic Foundry’s stronger consensus rating and higher possible upside, research analysts plainly believe Sonic Foundry is more favorable than its competitors.

Profitability

This table compares Sonic Foundry and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonic Foundry	-79.62%	-555.89%	-68.23%
Sonic Foundry Competitors	-180.59%	23.59%	-9.03%

Volatility & Risk

Sonic Foundry has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Sonic Foundry’s competitors have a beta of 0.97, indicating that their average stock price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

16.6% of Sonic Foundry shares are held by institutional investors. Comparatively, 49.6% of shares of all “Radio & t.v. communications equipment” companies are held by institutional investors. 46.5% of Sonic Foundry shares are held by insiders. Comparatively, 20.2% of shares of all “Radio & t.v. communications equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Sonic Foundry and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sonic Foundry	$27.47 million	-$7.08 million	-0.48
Sonic Foundry Competitors	$4.49 billion	$670.14 million	5.56

Sonic Foundry’s competitors have higher revenue and earnings than Sonic Foundry. Sonic Foundry is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Sonic Foundry competitors beat Sonic Foundry on 8 of the 13 factors compared.

Sonic Foundry Company Profile

Sonic Foundry, Inc. provides video capture, management, and streaming solutions in the United States, Europe, the Middle East, Asia, and internationally. The company offers Video Capture solutions, including Mediasite Recorder and Recorder Pro that are built-in room appliances used in schedule-based capture and advanced audio/video integration; Mediasite Mobile Recorders, a portable recording device used to capture and stream broadcast-quality video; and Mediasite Mosaic & Mosaic Pro that allows instructors, employees, and students to create videos, screencasts, and slideshows from their computers or mobile devices. It also provides Video Management and Delivery solutions to manage, search, analyze, publish, and stream video content; and Mediasite Cloud, a Software as a Service solution to host and manage customers' content. It markets its products to educational institutions, corporations, and government entities through reseller networks, direct sales, and partnerships with system integrators. The company was founded in 1991 and is headquartered in Madison, Wisconsin.