Critical Analysis: RingCentral (RNG) versus iPass (IPAS)
RingCentral (NASDAQ: IPAS) and iPass (NASDAQ:IPAS) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Valuation and Earnings
This table compares RingCentral and iPass’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RingCentral||$501.53 million||14.86||-$26.14 million||($0.35)||-267.43|
|iPass||$54.40 million||2.96||-$20.55 million||($0.31)||-6.19|
Volatility & Risk
RingCentral has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, iPass has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.
This table compares RingCentral and iPass’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for RingCentral and iPass, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
RingCentral presently has a consensus price target of $86.75, indicating a potential downside of 7.32%. iPass has a consensus price target of $1.47, indicating a potential downside of 23.61%. Given RingCentral’s higher possible upside, equities analysts clearly believe RingCentral is more favorable than iPass.
Insider & Institutional Ownership
77.5% of RingCentral shares are held by institutional investors. Comparatively, 20.3% of iPass shares are held by institutional investors. 12.0% of RingCentral shares are held by company insiders. Comparatively, 8.2% of iPass shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
RingCentral beats iPass on 10 of the 14 factors compared between the two stocks.
RingCentral Company Profile
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.
iPass Company Profile
iPass Inc. provides mobile connectivity that enables Wi-Fi access on various mobile devices in the United States and internationally. It offers mobile connectivity services that provide cloud-based solution allowing customers and their users access to its Wi-Fi network to stay connected to the people and information. The company provides business to business mobile connectivity solutions to large and small enterprises, as well as to strategic partnerships comprising original equipment manufacturers, loyalty programs, software product and service providers, and communication companies; and iPass SmartConnect that takes the guesswork out of Wi-Fi automatically connecting customers to the hotspot for their needs. It operates hotspots at airports, hotels, train stations, convention centers, outdoor venues, inflight, and others. The company sells its services directly through its global sales force, as well as through reseller and strategic partners. iPass Inc. was founded in 1996 and is headquartered in Redwood Shores, California.
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