Head-To-Head Review: IREN (NASDAQ:IREN) and Sangoma Technologies (NASDAQ:SANG)
by Renee Jackson · The Cerbat GemIREN (NASDAQ:IREN – Get Free Report) and Sangoma Technologies (NASDAQ:SANG – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional & Insider Ownership
41.1% of IREN shares are owned by institutional investors. Comparatively, 39.6% of Sangoma Technologies shares are owned by institutional investors. 5.0% of IREN shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares IREN and Sangoma Technologies”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IREN | $707.01 million | 23.28 | -$702.62 million | ($2.34) | -17.85 |
| Sangoma Technologies | $200.07 million | 0.81 | -$81.09 million | ($2.39) | -2.04 |
Sangoma Technologies has lower revenue, but higher earnings than IREN. IREN is trading at a lower price-to-earnings ratio than Sangoma Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for IREN and Sangoma Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IREN | 1 | 4 | 16 | 1 | 2.77 |
| Sangoma Technologies | 2 | 2 | 1 | 0 | 1.80 |
IREN currently has a consensus target price of $81.13, suggesting a potential upside of 94.28%. Sangoma Technologies has a consensus target price of $4.00, suggesting a potential downside of 18.03%. Given IREN’s stronger consensus rating and higher possible upside, research analysts clearly believe IREN is more favorable than Sangoma Technologies.
Volatility & Risk
IREN has a beta of 4.26, suggesting that its share price is 326% more volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
Profitability
This table compares IREN and Sangoma Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IREN | -99.38% | -15.46% | -5.51% |
| Sangoma Technologies | -38.99% | -3.85% | -2.93% |
Summary
IREN beats Sangoma Technologies on 10 of the 15 factors compared between the two stocks.
About IREN
IREN Limited, formerly known as Iris Energy Limited, owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.
About Sangoma Technologies
Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. The company offers Switchvox, a voice over internet protocol phone system; Switchvox Cloud, a unified communications solution, as well as provides cloud communication solutions. It offers SIP Trunking, a telephone service for one or multiple locations; PBXact Cloud, a centralized internet based solution; Asterisk and FreePBX, an open source IP PBX software; and FAXStation, a fax-over-IP solution. In addition, the company provides desk phone, DECT phones, and headset related products. Further, it offers VoIP gateways, session border controllers, telephony card, and managed service provider services. Sangoma Technologies Corporation was founded in 1984 and is headquartered in Markham, Canada.