Renren (RENN) versus Support.com (SPRT) Critical Review

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Renren (NYSE:RENN) and Support.com (NASDAQ:SPRT) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Renren and Support.com, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renren 0 0 0 0 N/A
Support.com 0 0 0 0 N/A

Risk and Volatility

Renren has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Support.com has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Profitability

This table compares Renren and Support.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renren 10.94% -19.14% -11.34%
Support.com -0.68% 1.55% 1.37%

Valuation and Earnings

This table compares Renren and Support.com’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Renren $202.10 million 0.52 -$110.42 million ($1.61) -0.96
Support.com $60.12 million 0.85 -$1.52 million N/A N/A

Support.com has lower revenue, but higher earnings than Renren.

Insider & Institutional Ownership

3.4% of Renren shares are held by institutional investors. Comparatively, 36.1% of Support.com shares are held by institutional investors. 17.2% of Support.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Support.com beats Renren on 8 of the 10 factors compared between the two stocks.

Renren Company Profile

Renren Inc. operates a social networking Internet platform in the People's Republic of China. It operates through two segments, Renren and Auto Group. The company operates Renren.com and Renren Mobile App that enable users to communicate and stay connected with friends, classmates, family members, and co-workers; and woxiu.com, a PC-based social video platform for users to stream their performances live to viewers. The company also sells used automobiles and related products; arranges financing options for customers through its financial services partners; provides credit financing for used automobile dealerships; and sells new cars, as well as provides value-added services, such as warranties, insurance, and after-sale products and services. It offers vehicles at its in-store showrooms; and through Kaixin Auto app, as well as through other online vertical channels, such as Autohome and 58.com. In addition, the company develops Chime, a software as a solution platform that offers lead generation and customer relationship management solutions for real estate professionals; and provides customizable lead capture landing pages that offer multiple home value estimates in the United States. Further, it provides online and mobile services for the trucking industry in the United States. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

Support.com Company Profile

Support.com, Inc. provides customer support services, end user software, and cloud-based software primarily in the United States. The company offers turnkey, outsourced support services for service providers, retailers, consumer electronics brands and warranty providers, Internet of Things solution providers, and technology companies. Its customer support services programs include pre-purchased concierge advice, device set-up, trouble shooting, security and support, virus and malware removal, wireless network set-up, and home security and automation system support designed for consumer, and small and medium business markets. The company also provides Support.com Cloud, a software-as-a-service solution for companies to optimize support interactions with their customers using their own or third party support personnel, as well as enables companies to resolve complex technology issues for their customers, boost agent productivity, providing ease of use for customer self-service, and improve the customer experience. In addition, it offers end-user software products, including SUPERAntiSpyware for malware protection and removal; and Cosmos for personal computer, smartphone, and tablet maintenance and optimization. The company provides its Support.com Cloud and end-user software products through direct sales channel; and technology support services through partners. Support.com, Inc. was founded in 1997 and is headquartered in Sunnyvale, California.

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