Reviewing Ooma (NYSE:OOMA) & Onfolio (NASDAQ:ONFO)

Onfolio (NASDAQ:ONFO) and Ooma (NYSE:OOMA) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Profitability

This table compares Onfolio and Ooma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onfolio	-136.82%	-55.27%	-39.49%
Ooma	-0.35%	0.35%	0.17%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Onfolio and Ooma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onfolio	0	0	0	0	N/A
Ooma	0	0	3	0	3.00

Ooma has a consensus target price of $14.67, indicating a potential upside of 92.73%. Given Ooma’s higher possible upside, analysts clearly believe Ooma is more favorable than Onfolio.

Earnings & Valuation

This table compares Onfolio and Ooma’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onfolio	$5.24 million	0.96	-$8.15 million	($1.52)	-0.64
Ooma	$236.74 million	0.85	-$830,000.00	($0.03)	-253.67

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

Insider and Institutional Ownership

0.8% of Onfolio shares are owned by institutional investors. Comparatively, 80.4% of Ooma shares are owned by institutional investors. 31.2% of Onfolio shares are owned by insiders. Comparatively, 9.8% of Ooma shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Ooma beats Onfolio on 9 of the 11 factors compared between the two stocks.

About Onfolio

Onfolio Holdings, Inc. acquires and develops internet businesses. It provides website management, digital, advertising, and content placement services on its websites; and product sales on various sites. The company was founded in 2018 and is based in Wilmington, Delaware.

About Ooma

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Connect, which delivers fixed wireless internet connectivity; and Ooma Enterprise, a unified-communications-as-a-service (UCaaS) solution. It also provides Ooma AirDial, a plain old telephone service; PureVoice HD, a residential phone services; Ooma basic that provides unlimited personal calling within the United States; and Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis. In addition, the company offers Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; and Ooma Telo LTE, which combines the Ooma Telo base station with the Ooma LTE Adapter and battery back-up. Further, it provides Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; 2600Hz provides business communication applications; Talkatone mobile app; and OnSIP, an UCaaS solutions. The company offers its products through direct sales, distributors, retailers, and resellers, as well as online and sale representatives. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.