Head-To-Head Survey: CounterPath Corporation (CPAH) & Gigamon (GIMO)

CounterPath Corporation (NASDAQ: CPAH) and Gigamon (NYSE:GIMO) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Valuation and Earnings

This table compares CounterPath Corporation and Gigamon’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
CounterPath Corporation $10.69 million 1.39 -$2.45 million ($0.66) -4.09
Gigamon $310.86 million 4.67 $49.43 million ($0.04) -965.00

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

Profitability

This table compares CounterPath Corporation and Gigamon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CounterPath Corporation -30.14% -34.00% -22.56%
Gigamon -0.32% -0.55% -0.38%

Institutional & Insider Ownership

5.4% of CounterPath Corporation shares are held by institutional investors. Comparatively, 96.7% of Gigamon shares are held by institutional investors. 38.3% of CounterPath Corporation shares are held by insiders. Comparatively, 4.5% of Gigamon shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for CounterPath Corporation and Gigamon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CounterPath Corporation 0 0 0 0 N/A
Gigamon 0 9 1 0 2.10

Gigamon has a consensus target price of $45.35, indicating a potential upside of 17.49%. Given Gigamon’s higher probable upside, analysts plainly believe Gigamon is more favorable than CounterPath Corporation.

Volatility and Risk

CounterPath Corporation has a beta of -0.69, indicating that its share price is 169% less volatile than the S&P 500. Comparatively, Gigamon has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Summary

Gigamon beats CounterPath Corporation on 11 of the 12 factors compared between the two stocks.

CounterPath Corporation Company Profile

CounterPath Corporation designs, develops and sells software and services that enable enterprises and telecommunication service providers to deliver unified communications (UC) services, including voice, video, messaging and collaboration functionality, over their Internet Protocol (IP)-based networks. The Company’s solutions range from software products to cloud-based services. Its software products include applications for smartphones, tablets and desktop computers, a Software Development Kit (SDK) for software developers seeking to add voice, video and messaging capabilities to their existing applications, and server-based software solutions for configuring, managing and supporting softphones and for deploying messaging and collaboration services. These software products are also available to customers in the form of cloud-based hosted services. The Company is focused on selling its software products to enterprises, telecommunication service providers and channel partners.

Gigamon Company Profile

Gigamon Inc. offers a solution that delivers visibility and control of data-in-motion traversing enterprise, federal and service provider networks. The Company’s Visibility Platform consists of a distributed system of nodes (that in combination establish a Visibility Fabric). The Visibility Platform includes physical appliances and virtual nodes that can be deployed in data centers, central offices, virtualized/private cloud/public cloud environments, and small form-factor remote site appliances, which in combination enable pervasive visibility of network infrastructures. Its GigaSECURE Security Delivery Platform enables security teams and information technology (IT) personnel to gain visibility into their IT infrastructure by forwarding selected traffic of interest from network, server and remote location infrastructure to security, management, analysis and compliance tools in a manner that is optimized for specific uses or functions.

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