Financial Analysis: One Horizon Group (OHGI) & Numerex Corp. (NMRX)
One Horizon Group (NASDAQ: OHGI) and Numerex Corp. (NASDAQ:NMRX) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitabiliy, valuation, analyst recommendations and dividends.
Valuation & Earnings
This table compares One Horizon Group and Numerex Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|One Horizon Group||$1.38 million||3.41||-$4.86 million||($0.93)||-0.81|
|Numerex Corp.||$68.98 million||1.24||-$2.55 million||($1.34)||-3.26|
Numerex Corp. has higher revenue and earnings than One Horizon Group. Numerex Corp. is trading at a lower price-to-earnings ratio than One Horizon Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
3.1% of One Horizon Group shares are held by institutional investors. Comparatively, 28.4% of Numerex Corp. shares are held by institutional investors. 26.0% of One Horizon Group shares are held by insiders. Comparatively, 14.1% of Numerex Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares One Horizon Group and Numerex Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|One Horizon Group||-404.14%||-105.19%||-47.68%|
Risk and Volatility
One Horizon Group has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Numerex Corp. has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
This is a breakdown of recent ratings for One Horizon Group and Numerex Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Horizon Group||0||0||0||0||N/A|
Numerex Corp. has a consensus price target of $5.17, indicating a potential upside of 18.23%. Given Numerex Corp.’s higher possible upside, analysts plainly believe Numerex Corp. is more favorable than One Horizon Group.
Numerex Corp. beats One Horizon Group on 8 of the 12 factors compared between the two stocks.
One Horizon Group Company Profile
One Horizon Group, Inc. is engaged in the development and licensing of software for mobile voice over Internet protocol (VoIP). The Company’s operations include the licensing of software to telecommunications operators and the development of software application platforms that optimize mobile voice, instant messaging and advertising communications over the Internet. It has two business segments, one for business to business line and one for business to consumer line. It designs, develops and sells white label SmartPacket software and services to telecommunications operators. Its licensees deliver an operator-branded mobile Internet communication solution to smartphones, including VoIP, multi-media messaging, video and mobile advertising. It sells its software, branding, hosting and operator services to telecommunications operators, enterprises, operators in fixed line telephony, cable television operators and to the satellite communications sector, and the VoIP as a Service business.
Numerex Corp. Company Profile
Numerex Corp. is a holding company. The Company, through its subsidiaries, provides managed enterprise solutions, which enable the Internet of Things (IoT). The Company offers solutions to incorporate the IoT building blocks, such as device, network, application and platform. Its technology encompasses a range of the IoT ecosystem and delivers solutions for enterprise users. It provides various enabling value-added services through the go-to-market process for its customers by simplifying the IoT implementation through its cloud-based and horizontal IoT platform. The Company offers its network services through cellular, satellite, broadband and wireline networks worldwide to transmit data. It offers Numerex platform, which combines IoT service enablement features with application framework to deploy solutions. The Company’s cellular networks include national and regional carriers, and consist of second generation (2G), third generation (3G) and fourth generation (4G) technologies.
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