Critical Analysis: RingCentral (RNG) vs. Support.com (SPRT)

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

Profitability

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

Net Margins Return on Equity Return on Assets
RingCentral -4.25% -3.64% -1.38%
Support.com -14.38% 2.67% 2.27%

Analyst Ratings

This is a summary of current recommendations and price targets for RingCentral and Support.com, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RingCentral 0 3 10 1 2.86
Support.com 0 0 0 0 N/A

RingCentral presently has a consensus price target of $108.54, indicating a potential upside of 5.26%. Given RingCentral’s higher possible upside, analysts plainly believe RingCentral is more favorable than Support.com.

Risk & Volatility

RingCentral has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Support.com has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Insider and Institutional Ownership

77.8% of RingCentral shares are held by institutional investors. Comparatively, 37.0% of Support.com shares are held by institutional investors. 12.0% of RingCentral shares are held by insiders. Comparatively, 17.2% of Support.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares RingCentral and Support.com’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RingCentral $501.53 million 16.52 -$26.14 million ($0.35) -294.60
Support.com $60.12 million 0.76 -$1.52 million N/A N/A

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

Summary

RingCentral beats Support.com on 8 of the 13 factors compared between the two stocks.

About RingCentral

RingCentral, Inc. provides software-as-a-service solutions for business communications and collaboration primarily in the United States. The company's products include RingCentral Office, a multi-tenant, multi-location, and enterprise-grade communications and collaboration solution that enables employees to communicate through voice, text, team messaging and collaboration, and HD video and Web conferencing through smartphones, tablets, PCs, and desk phones for businesses, which require a communications solution; RingCentral Professional, an inbound call routing subscription with additional text and fax capabilities primarily for smaller businesses; and RingCentral Fax solution that offers Internet fax capabilities, which allow businesses to send and receive fax documents without the need for a fax machine. Its products also comprise RingCentral Contact Center that provides a cloud based contact center solution, which delivers omni-channel capabilities; and RingCentral Glip, a team messaging and collaboration solution that allows a range of teams to stay connected through various modes of communication through an integration with RingCentral Office. RingCentral, Inc. serves a range of industries, including financial services, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others. The company sells its products through a network of direct sales representatives, as well as sales agents and channel partners. RingCentral, Inc. was founded in 1999 and is headquartered in Belmont, California.

About Support.com

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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