Ringcentral (RNG) vs. Benefitfocus (NASDAQ:BNFT) Head-To-Head Survey
Ringcentral (NYSE: RNG) and Benefitfocus (NASDAQ:BNFT) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitabiliy.
Risk and Volatility
Ringcentral has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Benefitfocus has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
Insider and Institutional Ownership
71.2% of Ringcentral shares are held by institutional investors. Comparatively, 83.3% of Benefitfocus shares are held by institutional investors. 14.5% of Ringcentral shares are held by insiders. Comparatively, 40.1% of Benefitfocus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Ringcentral and Benefitfocus’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ringcentral||$432.57 million||5.06||-$12.96 million||($0.39)||-90.00|
|Benefitfocus||$242.71 million||3.58||-$13.15 million||($0.92)||-30.41|
Ringcentral has higher revenue and earnings than Benefitfocus. Ringcentral is trading at a lower price-to-earnings ratio than Benefitfocus, indicating that it is currently the more affordable of the two stocks.
This table compares Ringcentral and Benefitfocus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Ringcentral and Benefitfocus, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ringcentral presently has a consensus price target of $38.17, suggesting a potential upside of 8.74%. Benefitfocus has a consensus price target of $40.00, suggesting a potential upside of 42.98%. Given Benefitfocus’ higher possible upside, analysts plainly believe Benefitfocus is more favorable than Ringcentral.
Ringcentral beats Benefitfocus on 8 of the 13 factors compared between the two stocks.
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.
Benefitfocus, Inc. (Benefitfocus) is a provider of cloud-based benefits management platform for consumers, employers, insurance carriers and brokers. The Benefitfocus Platform allows how organizations and individuals shop for, enroll in, manage and exchange benefits. The Company operates through two business segments: Employer, which derives its revenue from customers that use the Company’s services for the provision of benefits to their employees, and administrators acting on behalf of employers, Carrier, which derives its revenue from insurance companies that provide coverage at their own risk. Its solutions support benefits plans, including healthcare, dental, life and disability insurance, and voluntary benefits plans, such as critical illness, supplemental income and wellness programs. It provides a multi-tenant cloud-based benefits management platform to the employer and carrier markets.
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