Analyzing One Horizon Group (OHGI) and Nokia Corporation (NYSE:NOK)

Nokia Corporation (NYSE: NOK) and One Horizon Group (NASDAQ:OHGI) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Nokia Corporation and One Horizon Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nokia Corporation -1.78% 8.20% 3.68%
One Horizon Group -496.73% -142.64% -51.29%

Risk & Volatility

Nokia Corporation has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, One Horizon Group has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.

Institutional and Insider Ownership

5.9% of Nokia Corporation shares are held by institutional investors. Comparatively, 2.9% of One Horizon Group shares are held by institutional investors. 26.0% of One Horizon Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Nokia Corporation and One Horizon Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nokia Corporation $27.66 billion 1.26 $3.21 billion ($0.09) -68.77
One Horizon Group $1.38 million 3.24 -$4.86 million ($0.97) -0.74

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

Analyst Recommendations

This is a summary of recent recommendations for Nokia Corporation and One Horizon Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nokia Corporation 1 11 7 0 2.32
One Horizon Group 0 0 0 0 N/A

Nokia Corporation presently has a consensus target price of $5.83, suggesting a potential downside of 5.90%. Given Nokia Corporation’s higher probable upside, equities analysts clearly believe Nokia Corporation is more favorable than One Horizon Group.

Dividends

Nokia Corporation pays an annual dividend of $0.13 per share and has a dividend yield of 2.1%. One Horizon Group does not pay a dividend. Nokia Corporation pays out -144.4% of its earnings in the form of a dividend. Nokia Corporation has increased its dividend for 2 consecutive years.

Summary

Nokia Corporation beats One Horizon Group on 13 of the 15 factors compared between the two stocks.

About Nokia Corporation

Nokia Oyj is a Finland-based company engaged in the network and Internet protocol (IP) infrastructure, software, and related services market. The Company’s businesses include Nokia Networks and Nokia Technologies. The Company’s segments include Ultra Broadband Networks, IP Networks and Applications, and Nokia Technologies. The Ultra Broadband Networks segment comprises Mobile Networks and Fixed Networks operating segments. The IP Networks and Applications segment comprises IP/Optical Networks and Applications & Analytics operating segments. The Applications & Analytics operating segment offers software solutions spanning customer experience management, network operations and management, communications and collaboration, policy and charging, as well as Cloud, Internet of things (IoT), security, and analytics platforms that enable digital services providers and enterprises to accelerate and optimize their customer experience. The Company has Comptel Oyj among its subsidiaries.

About One Horizon Group

One Horizon Group, Inc. is engaged in the development and licensing of software for mobile voice over Internet protocol (VoIP). The Company’s operations include the licensing of software to telecommunications operators and the development of software application platforms that optimize mobile voice, instant messaging and advertising communications over the Internet. It has two business segments, one for business to business line and one for business to consumer line. It designs, develops and sells white label SmartPacket software and services to telecommunications operators. Its licensees deliver an operator-branded mobile Internet communication solution to smartphones, including VoIP, multi-media messaging, video and mobile advertising. It sells its software, branding, hosting and operator services to telecommunications operators, enterprises, operators in fixed line telephony, cable television operators and to the satellite communications sector, and the VoIP as a Service business.

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