Financial Analysis: Textura (TXTR) & RingCentral (RNG)

Textura (NYSE: TXTR) and RingCentral (NYSE:RNG) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

This table compares Textura and RingCentral’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Textura -6.22% -4.92% -3.32%
RingCentral -5.80% -17.97% -9.86%

Institutional and Insider Ownership

76.3% of RingCentral shares are owned by institutional investors. 14.5% of RingCentral shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Textura and RingCentral, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Textura 0 0 0 0 N/A
RingCentral 0 3 11 0 2.79

RingCentral has a consensus target price of $44.62, indicating a potential downside of 6.17%. Given RingCentral’s higher probable upside, analysts clearly believe RingCentral is more favorable than Textura.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Textura N/A N/A N/A ($0.58) -44.81
RingCentral $379.72 million 9.69 -$29.30 million ($0.36) -132.08

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

Summary

RingCentral beats Textura on 7 of the 10 factors compared between the two stocks.

Textura Company Profile

Textura Corporation is a provider of collaboration and productivity tools for the construction industry. The Company is engaged in providing on-demand business collaboration software solutions to the commercial construction industry. Its solutions are focused on facilitating collaboration between owners/developers, general contractors and subcontractors. The Company’s collaboration solutions provide functionality, data sharing and exchange capabilities, and workflow tools that support several business processes at various stages of the construction project lifecycle. Its collaborative solutions include Construction Payment Management (CPM), Early Payment Program (EPP), Submittal Exchange, GradeBeam, Pre-Qualification Management (PQM) and Latista. It also offers PlanSwift solutions. The Company offers its solutions to various participants, including owners/developers, general contractors, subcontractors, architects, material suppliers and others.

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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