Analyzing Farmhouse (OTCMKTS:FMHS) and Spok (NASDAQ:SPOK)

Farmhouse (OTCMKTS:FMHS) and Spok (NASDAQ:SPOK) are both small-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Farmhouse and Spok, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Farmhouse	0	0	0	0	0.00
Spok	0	2	0	0	2.00

Spok has a consensus price target of $14.00, indicating a potential upside of 32.95%. Given Spok’s stronger consensus rating and higher possible upside, analysts clearly believe Spok is more favorable than Farmhouse.

Risk and Volatility

Farmhouse has a beta of 30.73, indicating that its share price is 2,973% more volatile than the S&P 500. Comparatively, Spok has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

50.8% of Spok shares are owned by institutional investors. 72.4% of Farmhouse shares are owned by insiders. Comparatively, 7.3% of Spok shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Farmhouse and Spok’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmhouse	N/A	N/A	N/A
Spok	9.00%	8.50%	6.08%

Valuation and Earnings

This table compares Farmhouse and Spok”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmhouse	N/A	N/A	-$390,000.00	($0.18)	-0.83
Spok	$139.71 million	1.58	$15.88 million	$0.58	18.16

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

Summary

Spok beats Farmhouse on 10 of the 12 factors compared between the two stocks.

About Farmhouse

Farmhouse, Inc. operates a platform for the legal cannabis industry. It provides @420, a Twitter handle public platform that engages with cannabis enthusiasts; WeeClub, a cannabis social network platform that enables industry professionals to connect, discover products and services, and scale their businesses; and Web3 division, which facilitates licensing opportunities between established cannabis brands and influential digital collectible holders to launch digital collectible branded products and accessories. The company’s platform serves cannabis producers, retailers, consultants, and supply chain professionals. It markets its products through media, networking, live events, partnerships, search engine optimization, and direct sales calls to existing members. The company was founded in 2014 and is based in San Francisco, California.

About Spok

Spok Holdings, Inc., through its subsidiary, Spok, Inc., provides healthcare communication solutions in the United States, Europe, Canada, Australia, Asia, and the Middle East. The company's products and services enhance workflows for clinicians and support administrative compliance. It delivers clinical information to care teams when and where it matters to enhance patient outcomes; and provides GenA Pager, a one-way alphanumeric pager. The company offers subscriptions to one-way or two-way messaging services, as well as alphanumeric pagers that are configurable to support unencrypted or encrypted operation; and ancillary services, such as voicemail, and equipment loss or maintenance protection services, as well as sells devices to resellers who lease or resell them to their subscribers. Its Spok Care Connect suite products for contact centers, clinical alerting and notification, mobile communications and messaging, and public safety notifications. In addition, the company provides professional, software license updates, and product support services, as well as sells third-party equipment. It serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014. Spok Holdings, Inc. was founded in 1986 and is headquartered in Alexandria, Virginia.