Analyzing Ringcentral (RNG) & The Competition

Ringcentral (NYSE: RNG) is one of 97 public companies in the “Enterprise Software” industry, but how does it contrast to its competitors? We will compare Ringcentral to similar businesses based on the strength of its institutional ownership, dividends, profitability, analyst recommendations, valuation, risk and earnings.

Earnings & Valuation

This table compares Ringcentral and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ringcentral $432.57 million -$12.96 million -104.23
Ringcentral Competitors $1.27 billion $344.85 million 34.12

Ringcentral’s competitors have higher revenue and earnings than Ringcentral. Ringcentral is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Ringcentral and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ringcentral 0 3 10 0 2.77
Ringcentral Competitors 516 2410 4057 134 2.54

Ringcentral presently has a consensus target price of $39.17, indicating a potential downside of 3.65%. As a group, “Enterprise Software” companies have a potential upside of 7.14%. Given Ringcentral’s competitors higher probable upside, analysts clearly believe Ringcentral has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

75.2% of Ringcentral shares are held by institutional investors. Comparatively, 59.8% of shares of all “Enterprise Software” companies are held by institutional investors. 14.5% of Ringcentral shares are held by insiders. Comparatively, 23.6% of shares of all “Enterprise Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Ringcentral and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ringcentral -6.77% -19.59% -10.51%
Ringcentral Competitors -24.56% -412.88% -8.11%

Risk and Volatility

Ringcentral has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Ringcentral’s competitors have a beta of 1.13, indicating that their average share price is 13% more volatile than the S&P 500.

Summary

Ringcentral competitors beat Ringcentral on 7 of the 12 factors compared.

Ringcentral Company Profile

RingCentral, Inc. is a provider of software-as-a-service (SaaS) solutions for businesses to support modern communications. The Company’s cloud-based business communications solutions provide a single user identity across multiple locations and devices, including smartphones, tablets, personal computers (PCs) and desk phones, and allow for communication across multiple channels, including high definition (HD) voice, video, short messaging service (SMS), messaging and collaboration, conferencing, online meetings, and fax. The Company’s products include RingCentral Office, RingCentral Professional, RingCentral Fax, RingCentral Contact Center and RingCentral Glip. RingCentral Office is a multi-user, enterprise-grade communications solution. RingCentral Professional is an inbound call routing subscription with additional text and fax capabilities targeting smaller deployments, and RingCentral Fax is an Internet fax subscription that permits sending and receiving faxes over the Internet.

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