Sonic Foundry (NASDAQ:SOFO – Get Free Report) and KVH Industries (NASDAQ:KVHI – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Earnings & Valuation
This table compares Sonic Foundry and KVH Industries’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonic Foundry | $22.11 million | 0.01 | -$19.35 million | ($1.62) | -0.01 |
| KVH Industries | $132.38 million | 0.75 | -$15.42 million | ($0.80) | -6.31 |
KVH Industries has higher revenue and earnings than Sonic Foundry. KVH Industries is trading at a lower price-to-earnings ratio than Sonic Foundry, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sonic Foundry and KVH Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonic Foundry | -87.34% | N/A | -80.37% |
| KVH Industries | -11.69% | -0.15% | -0.13% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Sonic Foundry and KVH Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonic Foundry | 0 | 1 | 0 | 0 | 2.00 |
| KVH Industries | 0 | 0 | 1 | 0 | 3.00 |
KVH Industries has a consensus target price of $7.00, indicating a potential upside of 38.61%. Given KVH Industries’ stronger consensus rating and higher probable upside, analysts clearly believe KVH Industries is more favorable than Sonic Foundry.
Insider and Institutional Ownership
73.7% of KVH Industries shares are held by institutional investors. 46.5% of Sonic Foundry shares are held by insiders. Comparatively, 5.3% of KVH Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Sonic Foundry has a beta of -0.72, indicating that its share price is 172% less volatile than the S&P 500. Comparatively, KVH Industries has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.
Summary
KVH Industries beats Sonic Foundry on 11 of the 14 factors compared between the two stocks.
About Sonic Foundry
Sonic Foundry, Inc. provides video capture, management, and streaming solutions in the United States, Europe, the Middle East, Asia, and internationally. The company offers Video Capture solutions, including Mediasite Recorder and Recorder Pro that are built-in room appliances used in schedule-based capture and advanced audio/video integration; Mediasite Mobile Recorders, a portable recording device used to capture and stream broadcast-quality video; Mediasite Mosaic & Mosaic Pro that allows instructors, employees, and students to create videos, screencasts, and slideshows from their computers or mobile devices; and Mediasite Capture, a browser-based recording application that provides users a quick way to record their camera, microphone, and desktop. It also provides Video Management and Delivery solutions to manage, search, analyze, publish, and stream video content; Vidable, an AI powered solution that turns an organization’s video libraries into dynamic knowledge base; Global Learning Exchange that provides students to access higher education in a flexible, cost effective, and locally supported environment; and Mediasite Cloud, a Software as a Service solution to host and manage customers’ content. It markets its products to educational institutions, corporations, and government entities through reseller networks, direct sales, and partnerships with system integrators. Sonic Foundry, Inc. was founded in 1991 and is headquartered in Madison, Wisconsin.
About KVH Industries
KVH Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of mobile connectivity solutions for the marine and land mobile markets in the United States and internationally. The company offers Internet and VoIP airtime services; AgilePlans, a Connectivity as a Service solution; KVH Link, a crew wellbeing content subscription service with delivery by IP-Mobilecast; and OpenNet, a KVH VSAT data delivering service for non-KVH Ku-band VSAT terminals. It also provides TracNet, an integrated hybrid two-way communication terminal with VSAT, 5G/LTE, and shore-based Wi-Fi; TracPhone, a two-way VSAT-only satellite communications system; CommBox, ship-to-shore network…
Read More: Head to Head Analysis: Sonic Foundry (NASDAQ:SOFO) versus KVH Industries