SeaChange International (NASDAQ:SEAC) vs. Sonic Foundry (NASDAQ:SOFO) Head-To-Head Survey

Sonic Foundry (NASDAQ:SOFO) and SeaChange International (NASDAQ:SEAC) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Valuation & Earnings

This table compares Sonic Foundry and SeaChange International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonic Foundry $36.00 million 0.23 -$5.03 million N/A N/A
SeaChange International $62.40 million 1.10 -$38.00 million ($0.39) -4.79

Sonic Foundry has higher earnings, but lower revenue than SeaChange International.

Analyst Recommendations

This is a breakdown of recent recommendations for Sonic Foundry and SeaChange International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonic Foundry 0 0 0 0 N/A
SeaChange International 0 1 1 0 2.50

SeaChange International has a consensus target price of $4.00, suggesting a potential upside of 113.90%. Given SeaChange International’s higher possible upside, analysts plainly believe SeaChange International is more favorable than Sonic Foundry.

Profitability

This table compares Sonic Foundry and SeaChange International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonic Foundry -10.87% -258.54% -16.66%
SeaChange International -77.53% -30.21% -22.70%

Institutional & Insider Ownership

13.1% of Sonic Foundry shares are held by institutional investors. Comparatively, 39.0% of SeaChange International shares are held by institutional investors. 26.4% of Sonic Foundry shares are held by insiders. Comparatively, 2.9% of SeaChange International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Sonic Foundry has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, SeaChange International has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Summary

SeaChange International beats Sonic Foundry on 7 of the 11 factors compared between the two stocks.

Sonic Foundry Company Profile

Sonic Foundry, Inc. provides enterprise solutions and services for the Web communications market in the United States and internationally. It offers Mediasite Video Platform, an on-premises solution to publish, stream, manage, search, and analyze videos; and Mediasite Video Cloud, a solution, which provides hosting and management of content. The company also provides Mediasite Capture Solutions comprising My Mediasite that makes a snap for instructors, employees, and students to create videos, screencasts, and slideshows from their computers or mobile devices; Mediasite RL Recorders that are a series of built-in room appliances for use in recording video and content; Mediasite RL Mini, which builds/expands an automated lecture capture programs in community colleges, vocational-tech schools, small departments, and K12 classrooms; Mediasite Catch, a video capture solution to extend video capture to various classrooms on campus; Mediasite ML Recorders, a video producer with portable recording solutions to capture and stream broadcast-quality video; and Mediasite Join that captures and preserves video calls or meetings. In addition, it provides Mediasite Events, which offers live and on-demand Webcasting for conferences, hybrid events, and high-profile broadcasts; Mediasite Services comprising advanced integration, installation, and training services; and Mediasite Customer care that provides software upgrades and updates, technical support assistance, hardware warranty extension, Mediasite Recorder replacement, and access to the Mediasite Customer care Portal and Mediasite Community. The company 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.

SeaChange International Company Profile

SeaChange International, Inc. provides multiscreen, advertising, and premium over the top (OTT) video products and services that facilitate the aggregation, licensing, management, and distribution of video and television advertising content worldwide. It offers video products, including SeaChange Adrenalin, a multiscreen video back office platform that enables service providers to manage, monetize, and deliver a seamless viewing experience across televisions, personal computers (PCs), tablets, smartphones, and other IP-enabled devices; and SeaChange AssetFlow, a content management solution, which is used to receive, manage, and publish content for viewing on televisions, tablets, PCs, and other consumer devices, as well as SeaChange Rave, an integrated platform. The company also provides advertising products, such as SeaChange Infusion, an advertising platform to maximize advertising revenue across multiscreen, broadcast, on-demand, and OTT viewing. In addition, it offers Nucleus, a video gateway software that ports to third-party set-top boxes, or other customer on-premises equipment hardware and system on a chip, as well as acts as a hub for various video distribution to any IP-connected device throughout the home, such as tablets, smart phones, and game consoles; and SeaChange NitroX, an user experience product that empower service providers and content owners to optimize live and on-demand video consumption on multiscreen and OTT services. Further, the company provides professional, and maintenance and support services, as well as managed services. It sells and markets its products and services through a direct sales organization, and sales representatives and partners, as well as to systems integrators and value-added resellers. The company serves cable system and satellite operators, as well as telecommunications and media companies. SeaChange International, Inc. was founded in 1993 and is headquartered in Acton, Massachusetts.

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