Ringcentral (NYSE: RNG) is one of 97 public companies in the “Enterprise Software” industry, but how does it contrast to its peers? We will compare Ringcentral to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.
Risk and Volatility
Ringcentral has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Ringcentral’s peers have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.
This is a summary of current ratings for Ringcentral and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ringcentral currently has a consensus price target of $39.17, indicating a potential downside of 4.82%. As a group, “Enterprise Software” companies have a potential upside of 7.95%. Given Ringcentral’s peers higher possible upside, analysts clearly believe Ringcentral has less favorable growth aspects than its peers.
Insider & Institutional Ownership
75.2% of Ringcentral shares are held by institutional investors. Comparatively, 61.0% of shares of all “Enterprise Software” companies are held by institutional investors. 14.5% of Ringcentral shares are held by company insiders. Comparatively, 22.7% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Ringcentral and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Ringcentral and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ringcentral||$432.57 million||-$12.96 million||-105.51|
|Ringcentral Competitors||$1.27 billion||$344.82 million||33.89|
Ringcentral’s peers have higher revenue and earnings than Ringcentral. Ringcentral is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Ringcentral peers 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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