Financial Analysis: Sonic Foundry (OTCMKTS:SOFO) & Airspan Networks (NYSE:MIMO)

Sonic Foundry (OTCMKTS:SOFO – Get Rating) and Airspan Networks (NYSE:MIMO – Get Rating) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Sonic Foundry and Airspan Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonic Foundry	-39.40%	-266.46%	-44.87%
Airspan Networks	-53.23%	N/A	-58.23%

Analyst Recommendations

This is a breakdown of current ratings for Sonic Foundry and Airspan Networks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonic Foundry	0	0	1	0	3.00
Airspan Networks	0	1	1	0	2.50

Sonic Foundry currently has a consensus target price of $3.00, suggesting a potential upside of 205.37%. Airspan Networks has a consensus target price of $4.92, suggesting a potential upside of 359.50%. Given Airspan Networks’ higher probable upside, analysts clearly believe Airspan Networks is more favorable than Sonic Foundry.

Insider & Institutional Ownership

6.8% of Sonic Foundry shares are owned by institutional investors. Comparatively, 66.7% of Airspan Networks shares are owned by institutional investors. 46.5% of Sonic Foundry shares are owned by insiders. Comparatively, 47.3% of Airspan Networks shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Sonic Foundry has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Airspan Networks has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sonic Foundry and Airspan Networks’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonic Foundry	$27.47 million	0.43	-$7.08 million	($0.92)	-1.07
Airspan Networks	$177.28 million	0.45	-$71.91 million	($1.29)	-0.83

Sonic Foundry has higher earnings, but lower revenue than Airspan Networks. Sonic Foundry is trading at a lower price-to-earnings ratio than Airspan Networks, indicating that it is currently the more affordable of the two stocks.

Summary

Airspan Networks beats Sonic Foundry on 8 of the 13 factors compared between the two stocks.

About Sonic Foundry

(Get Rating)

Sonic Foundry, Inc. engages in the provision of video capture, management, and webcasting solutions in education, business, and government. The firm also offers solutions for lecture capture, flipped & blended learning, campus events, learning and development, corporate communications, live events and meetings, corporate YouTube, continuing medical education, procedures, simulations, and grand rounds. Its products include Mediasite and Mediasite Events. The company was founded by Monty R. Schmidt in 1991 and is headquartered in Madison, WI.

About Airspan Networks

(Get Rating)

Airspan Networks Holdings Inc. designs and produces wireless network equipment for 4G and 5G networks for mainstream public telecommunications service providers and private network implementations. It offers a range of 4G and 5G network build and network densification products with a portfolio of software and hardware tools for indoor and outdoor, compact femto, pico, micro, and macro base stations, as well as fixed wireless access and backhaul solutions portfolio for point-to-point and point-to-multipoint applications. The company serves mobile communications service providers, large enterprises, military communications integrators, and internet service providers. Airspan Networks Holdings Inc. is headquartered in Boca Raton, Florida.