RealPage (NASDAQ: RP) and Ringcentral (NYSE:RNG) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares RealPage and Ringcentral’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RealPage 4.25% 10.26% 4.76%
Ringcentral -6.77% -19.59% -10.51%

Volatility and Risk

RealPage has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Ringcentral has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for RealPage and Ringcentral, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RealPage 1 1 4 0 2.50
Ringcentral 0 3 10 0 2.77

RealPage presently has a consensus target price of $39.83, indicating a potential downside of 5.61%. Ringcentral has a consensus target price of $39.17, indicating a potential downside of 2.81%. Given Ringcentral’s stronger consensus rating and higher probable upside, analysts clearly believe Ringcentral is more favorable than RealPage.

Institutional and Insider Ownership

70.5% of RealPage shares are held by institutional investors. Comparatively, 75.2% of Ringcentral shares are held by institutional investors. 33.2% of RealPage shares are held by insiders. Comparatively, 14.5% of Ringcentral shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares RealPage and Ringcentral’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
RealPage $611.25 million 5.46 $91.37 million $0.32 131.88
Ringcentral $432.57 million 7.14 -$12.96 million ($0.39) -103.33

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

Summary

RealPage beats Ringcentral on 8 of the 13 factors compared between the two stocks.

RealPage Company Profile

RealPage, Inc. is a provider of technology to the real estate industry, helping owners, managers and investors. The Company’s property management solutions are referred to as Enterprise Resource Planning systems. Its on demand platform provides a single point of access and a repository of real-time lease transaction data, including prospect, renter and property data. Its platform consists of four primary categories of solutions: Property Management, Lease Management, Resident Services and Asset Optimization. These solutions provide complementary asset performance and investment decision support; risk mitigation, billing and utility management; resident engagement, spend management, operations and facilities management, and lead generation and lease management capabilities that collectively enable its clients to manage all the stages of the renter life cycle. In addition, its open architecture allows third-party applications to access its solutions using its RealPage Exchange platform.

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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