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

Insider and Institutional Ownership

81.7% of Tableau Software shares are held by institutional investors. Comparatively, 76.4% of Ringcentral shares are held by institutional investors. 24.8% of Tableau Software shares are held by company insiders. Comparatively, 14.5% of Ringcentral shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Tableau Software has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Ringcentral has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tableau Software $826.94 million 6.63 -$144.44 million ($2.12) -32.44
Ringcentral $379.72 million 8.96 -$29.30 million ($0.35) -125.71

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Tableau Software and Ringcentral, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tableau Software 2 16 13 0 2.35
Ringcentral 0 2 11 0 2.85

Tableau Software currently has a consensus price target of $71.16, suggesting a potential upside of 3.48%. Ringcentral has a consensus price target of $43.50, suggesting a potential downside of 1.14%. Given Tableau Software’s higher probable upside, research analysts plainly believe Tableau Software is more favorable than Ringcentral.

Profitability

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

Net Margins Return on Equity Return on Assets
Tableau Software -18.76% -20.89% -12.59%
Ringcentral -5.80% -17.97% -9.86%

Summary

Ringcentral beats Tableau Software on 7 of the 13 factors compared between the two stocks.

Tableau Software Company Profile

Tableau Software, Inc. (Tableau) offers software products. The Company’s products are used by people of diverse skill levels across all kinds of organizations. The Company’s products are used by people of skill levels across all kinds of organizations. Its technologies include visual query language (VizQL) and Hybrid Data Architecture. VizQL unifies the formerly disparate tasks of query and visualization and allows users to transform questions into pictures without the need for software scripts, chart wizards or dialogue boxes. The Company’s products include Tableau Desktop, a self-service product for anyone with data; Tableau Server, a business intelligence platform for organizations; Tableau Online, a hosted software-as-a-service (SaaS) version of Tableau Server; Tableau Public, a cloud-based platform for analyzing and sharing public data, and Vizable, an application used to analyze data on a tablet.

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.

Receive News & Ratings for Tableau Software Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tableau Software Inc. and related companies with MarketBeat.com's FREE daily email newsletter.