RingCentral (NYSE: RNG) and ServiceNow (NYSE:NOW) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
This is a breakdown of current ratings and price targets for RingCentral and ServiceNow, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider and Institutional Ownership
78.5% of RingCentral shares are held by institutional investors. Comparatively, 98.4% of ServiceNow shares are held by institutional investors. 14.5% of RingCentral shares are held by company insiders. Comparatively, 3.3% of ServiceNow shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares RingCentral and ServiceNow’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
RingCentral has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, ServiceNow has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Valuation and Earnings
This table compares RingCentral and ServiceNow’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RingCentral||$501.53 million||9.99||-$26.14 million||($0.34)||-190.59|
|ServiceNow||$1.93 billion||14.01||-$149.13 million||($0.87)||-180.18|
RingCentral has higher earnings, but lower revenue than ServiceNow. RingCentral is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
ServiceNow beats RingCentral on 10 of the 15 factors compared between the two stocks.
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.
ServiceNow Company Profile
ServiceNow, Inc. is provider of enterprise cloud computing solutions that define, structure, manage and automate services for global enterprises. The Company offers a set of cloud-based services that automate workflow within and between departments in an enterprise. It provides workflow solutions, and focuses on service management for customer support, human resources, security operations and other enterprise departments. The platform also enables customers to create, by themselves or with its partners, their own service-oriented business applications throughout the enterprise. The Company delivers its software through the Internet as a service. It markets its services to enterprises in a range of industries, including financial services, consumer products, information technology services, healthcare, government, education and technology. It operates data centers in Australia, Brazil, Canada, Hong Kong, the Netherlands, Singapore, Switzerland, the United Kingdom and the United States.
Receive News & Ratings for RingCentral Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RingCentral and related companies with MarketBeat.com's FREE daily email newsletter.