Qumu Corporation (NASDAQ: QUMU) and Radcom (NASDAQ:RDCM) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Qumu Corporation and Radcom, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qumu Corporation 0 0 0 0 N/A
Radcom 0 0 2 0 3.00

Radcom has a consensus target price of $27.00, suggesting a potential upside of 39.53%. Given Radcom’s higher possible upside, analysts plainly believe Radcom is more favorable than Qumu Corporation.

Profitability

This table compares Qumu Corporation and Radcom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qumu Corporation -29.95% -53.09% -23.13%
Radcom -3.90% -2.19% -1.64%

Valuation & Earnings

This table compares Qumu Corporation and Radcom’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Qumu Corporation $29.80 million 0.90 -$5.91 million ($0.98) -2.92
Radcom $32.72 million 6.91 -$1.04 million ($0.11) -175.91

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

Institutional and Insider Ownership

24.8% of Qumu Corporation shares are owned by institutional investors. Comparatively, 15.1% of Radcom shares are owned by institutional investors. 11.2% of Qumu Corporation shares are owned by company insiders. Comparatively, 69.0% of Radcom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Qumu Corporation has a beta of -0.44, meaning that its stock price is 144% less volatile than the S&P 500. Comparatively, Radcom has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Summary

Radcom beats Qumu Corporation on 11 of the 12 factors compared between the two stocks.

Qumu Corporation Company Profile

Qumu Corporation (Qumu) is an enterprise video content management software company. The Company is engaged in providing tools businesses need to create, manage, secure, deliver and measure their videos. The Company operates through the enterprise video content management software business segment. Its video content management software solutions allow organizations to create, capture, organize and deliver content across the extended enterprise to a range of end points, including mobile devices and thick or thin clients. Qumu’s video platform supports both live and on-demand streaming. The Qumu platform is a video content management software solution that can be deployed as a perpetual software license, a term software license or a cloud-hosted software as a service (SaaS). Qumu Capture Studio is a portable software-enabled device that records, edits and publishes video and presentation content.

Radcom Company Profile

RADCOM Ltd. (RADCOM) provides service assurance and customer experience management solutions for communication service providers (CSPs). The Company provides solutions for networks, including long-term evolution (LTE), LTE Advanced (LTE-A), voice over LTE (VoLTE), Internet protocol multimedia subsystem (IMS), Voice over Internet protocol (VoIP), universal mobile telecommunications system (UMTS) or global system for mobile communications (GSM) and mobile broadband. Its software-based solutions enable CSPs to manage both existing networks and network functions virtualization (NFV) based architectures. Its products and solutions include The MaveriQ Solution for Service Assurance and customer experience management (CEM). The MaveriQ solution is a probe-based customer and service assurance solution designed to enable CSPs to carry out end-to-end voice and data quality monitoring and to manage their networks and services. The MaveriQ solution offers analysis and troubleshooting tools.

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