Head-To-Head Comparison: F5 (NASDAQ:FFIV) & Sangoma Technologies (NASDAQ:SANG)

Sangoma Technologies (NASDAQ:SANG) and F5 (NASDAQ:FFIV) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares Sangoma Technologies and F5″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sangoma Technologies	$236.69 million	0.60	-$5.01 million	($0.16)	-26.59
F5	$3.09 billion	5.92	$692.38 million	$12.19	26.51

F5 has higher revenue and earnings than Sangoma Technologies. Sangoma Technologies is trading at a lower price-to-earnings ratio than F5, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Sangoma Technologies and F5, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sangoma Technologies	1	1	1	1	2.50
F5	2	5	5	0	2.25

F5 has a consensus target price of $316.44, suggesting a potential downside of 2.09%. Given F5’s higher probable upside, analysts plainly believe F5 is more favorable than Sangoma Technologies.

Insider and Institutional Ownership

39.7% of Sangoma Technologies shares are owned by institutional investors. Comparatively, 90.7% of F5 shares are owned by institutional investors. 0.5% of F5 shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Sangoma Technologies and F5’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sangoma Technologies	-2.53%	-1.80%	-1.33%
F5	21.96%	21.50%	12.15%

Volatility and Risk

Sangoma Technologies has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, F5 has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Summary

F5 beats Sangoma Technologies on 12 of the 15 factors compared between the two stocks.

About Sangoma Technologies

Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. The company offers Switchvox, a voice over internet protocol phone system; Switchvox Cloud, a unified communications solution, as well as provides cloud communication solutions. It offers SIP Trunking, a telephone service for one or multiple locations; PBXact Cloud, a centralized internet based solution; Asterisk and FreePBX, an open source IP PBX software; and FAXStation, a fax-over-IP solution. In addition, the company provides desk phone, DECT phones, and headset related products. Further, it offers VoIP gateways, session border controllers, telephony card, and managed service provider services. Sangoma Technologies Corporation was founded in 1984 and is headquartered in Markham, Canada.

About F5

F5, Inc. provides multi-cloud application security and delivery solutions in the United States, Europe, the Middle East, Africa, and the Asia Pacific region. The company’s distributed cloud services enable its customers to deploy, secure, and operate applications in any architecture, from on-premises to the public cloud. It offers unified, security, networking, and application management solutions, such as web app and API protection; multi-cloud networking; application delivery and deployment; domain name system; content delivery network; and application deployment and orchestration. The company also provides application security and delivery products, including NGINX Plus; NGINX Management Suite; NGINX Ingress Controller; NGINX App Protect; BIG-IP Packaged Software; and BIG-IP Systems. In addition, it provides a range of professional services, including maintenance, consulting, training, and other technical support services. F5, Inc. sells its products to large enterprise businesses, public sector institutions, governments, and service providers through distributors, value-added resellers, managed service providers, systems integrators, and other indirect channel partners. It has partnerships with public cloud providers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform. The company was formerly known as F5 Networks, Inc. and changed its name to F5, Inc. in November 2021. F5, Inc. was incorporated in 1996 and is headquartered in Seattle, Washington.