Cerence Inc. (CRNC) vs Ooma, Inc. (OOMA)

Cerence Inc. and Ooma, Inc. are both Software Application companies. Ooma, Inc. is the larger, with a market value of $484.7M against $363.2M — 1.3× the size. Cerence Inc. has negative trailing earnings, so its P/E is not meaningful; Ooma, Inc. trades at 46.1×. Cerence Inc. grew revenue faster over the last twelve months: 25.8% against 17.2%. Ooma, Inc. has the higher net margin (3.57% vs −4.97%) and the lower return on invested capital (5.35% vs 7.95%). Across the 20 metrics below, Cerence Inc. leads on 12 and Ooma, Inc. on 8.

Valuation

Metric CRNC OOMA Software Application median
P/E n/m 46.10 26.44
P/S 1.19 1.62 2.90
P/B 2.21 5.04 2.60
Price to free cash flow 4.67 16.35 17.04
EV/EBITDA 12.83 17.94 15.48
EV/Sales 1.53 1.71 3.00
Earnings yield (4.43%) 2.17% 0.20%
Free cash flow yield 21.43% 6.12% 1.96%

Profitability

Metric CRNC OOMA Software Application median
Gross margin 78.69% 61.47% 67.34%
Operating margin 8.72% 3.55% 0.00%
Net margin (4.97%) 3.57% 0.00%
Free cash flow margin 25.41% 9.88% 5.77%
Return on equity (9.56%) 11.72% 0.00%
Return on assets (2.45%) 5.81% 0.00%
Return on invested capital 7.95% 5.35% 0.00%

Growth

Metric CRNC OOMA Software Application median
Revenue growth (TTM) 25.84% 17.19% 12.12%
EPS growth (last fiscal year) 96.95% 188.46% 32.44%
Revenue growth, 5-year CAGR (5.32%) 10.12% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CRNC OOMA Software Application median
Debt to equity 1.04 0.47 0.04
Current ratio 2.08 0.95 1.53
Net debt to EBITDA 13.59 2.03 0.09

Dividend

Metric CRNC OOMA Software Application median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric CRNC OOMA Software Application median
Market cap 363.20m 484.66m 383.88m

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