Ringcentral (NYSE: RNG) and MaxPoint Interactive (NASDAQ:MXPT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

75.2% of Ringcentral shares are owned by institutional investors. Comparatively, 8.0% of MaxPoint Interactive shares are owned by institutional investors. 14.5% of Ringcentral shares are owned by insiders. Comparatively, 57.1% of MaxPoint Interactive shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Ringcentral and MaxPoint Interactive, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ringcentral 0 3 10 0 2.77
MaxPoint Interactive 0 1 0 0 2.00

Ringcentral currently has a consensus target price of $39.42, suggesting a potential downside of 9.18%. Given Ringcentral’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ringcentral is more favorable than MaxPoint Interactive.

Volatility and Risk

Ringcentral has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, MaxPoint Interactive has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ringcentral and MaxPoint Interactive’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ringcentral $432.57 million 7.69 -$12.96 million ($0.39) -111.28
MaxPoint Interactive $144.42 million 0.65 -$8.89 million ($2.21) -6.27

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

Profitability

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

Net Margins Return on Equity Return on Assets
Ringcentral -6.77% -19.59% -10.51%
MaxPoint Interactive -10.18% -45.24% -19.16%

Summary

Ringcentral beats MaxPoint Interactive on 10 of the 13 factors compared between the two stocks.

About Ringcentral

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.

About MaxPoint Interactive

MaxPoint Interactive, Inc. is a marketing technology company. The Company provides business intelligence and marketing automation solution. The Company’s MaxPoint Intelligence Platform is a cloud-based software service that enables to predict local demand for national brands based on consumers’ purchase power and intent and manage customized digital advertisements containing in-store offers and promotions to reach consumers at a local level across display, mobile, social and video channels. Through marketing automation and direct integrations with real-time bidding (RTB) exchanges, the Company’s platform delivers customized digital advertisements containing product and store specific promotions to local consumers. The Company’s customers are located in the United States and Europe, and consist of enterprises with national brands in the consumer products, retail, automotive, financial services, healthcare, telecommunications and entertainment industries.

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