Versus Systems (NASDAQ:VS) and Ooma (NYSE:OOMA) Financial Analysis

Ooma (NYSE:OOMA) and Versus Systems (NASDAQ:VS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares Ooma and Versus Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ooma $168.95 million 2.83 -$2.44 million ($0.11) -185.00
Versus Systems $1.39 million 24.78 -$5.78 million ($0.88) -3.19

Ooma has higher revenue and earnings than Versus Systems. Ooma is trading at a lower price-to-earnings ratio than Versus Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Ooma and Versus Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ooma 0 0 4 0 3.00
Versus Systems 0 0 1 0 3.00

Ooma currently has a consensus price target of $28.17, suggesting a potential upside of 38.41%. Versus Systems has a consensus price target of $5.00, suggesting a potential upside of 77.94%. Given Versus Systems’ higher probable upside, analysts clearly believe Versus Systems is more favorable than Ooma.

Profitability

This table compares Ooma and Versus Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ooma -1.30% -2.50% -1.12%
Versus Systems -860.03% -211.23% -104.21%

Insider and Institutional Ownership

82.0% of Ooma shares are owned by institutional investors. Comparatively, 7.8% of Versus Systems shares are owned by institutional investors. 9.9% of Ooma shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Ooma beats Versus Systems on 9 of the 12 factors compared between the two stocks.

About Ooma

Ooma, Inc. engages in the provision of platform 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. The Ooma business offers small business phone service, and enterprise communications. The Ooma residential deals with phone services, and smart security; and 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.

About Versus Systems

Versus Systems Inc. develops and operates a business-to-business software platform that allows video game publishers and developers to offer prize-based matches of their games to their players in Canada and the United States. It also offers business-to-business software platform to other interactive media content creators. The Versus platform can be integrated into streaming media, TV, mobile, console, and PC games, as well as mobile apps. Versus Systems Inc. has strategic partnership with Frias Agency. The company is headquartered in Vancouver, Canada.

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