Head-To-Head Comparison: Sangoma Technologies (NASDAQ:SANG) versus A10 Networks (NYSE:ATEN)

A10 Networks (NYSE:ATEN) and Sangoma Technologies (NASDAQ:SANG) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Valuation & Earnings

This table compares A10 Networks and Sangoma Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A10 Networks	$327.04 million	6.30	$42.14 million	$0.66	43.33
Sangoma Technologies	$200.07 million	0.79	-$81.09 million	($2.41)	-1.98

A10 Networks has higher revenue and earnings than Sangoma Technologies. Sangoma Technologies is trading at a lower price-to-earnings ratio than A10 Networks, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares A10 Networks and Sangoma Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A10 Networks	14.66%	25.35%	8.79%
Sangoma Technologies	-39.41%	-4.68%	-3.57%

Risk and Volatility

A10 Networks has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for A10 Networks and Sangoma Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A10 Networks	0	5	2	0	2.29
Sangoma Technologies	2	2	1	0	1.80

A10 Networks currently has a consensus price target of $30.38, suggesting a potential upside of 6.22%. Sangoma Technologies has a consensus price target of $4.00, suggesting a potential downside of 16.14%. Given A10 Networks’ stronger consensus rating and higher probable upside, analysts plainly believe A10 Networks is more favorable than Sangoma Technologies.

Insider & Institutional Ownership

98.6% of A10 Networks shares are owned by institutional investors. Comparatively, 39.6% of Sangoma Technologies shares are owned by institutional investors. 1.2% of A10 Networks shares are owned by insiders. Comparatively, 14.0% of Sangoma Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

A10 Networks beats Sangoma Technologies on 12 of the 14 factors compared between the two stocks.

About A10 Networks

A10 Networks, Inc. provides application delivery and cybersecurity solutions for enterprises, service providers and cloud providers. Its products are designed to help organizations maintain the availability, performance and security of applications and network services. The company’s portfolio includes application delivery controllers, distributed denial-of-service (DDoS) protection, network firewalls, and tools for encrypted-traffic visibility and management. These solutions are offered as physical appliances, software and cloud-based services.

About Sangoma Technologies

Sangoma Technologies is a Canadian business communications provider offering cloud-based and on-premises products and services. Its portfolio includes unified communications, contact center solutions, business phone systems, SIP trunking and collaboration tools designed to help organizations manage voice and digital communications. The company’s offerings include hosted communications services as well as software and hardware for business telephony. Sangoma also supports the Asterisk and FreePBX communications platforms; its acquisition of Digium in 2018 expanded its portfolio and brought the Asterisk business into the company.