LM Funding America (NASDAQ:PWCM – Get Free Report) and Radcom (NASDAQ:RDCM – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Volatility and Risk
LM Funding America has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500. Comparatively, Radcom has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
Profitability
This table compares LM Funding America and Radcom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LM Funding America | -413.92% | -132.69% | -78.02% |
| Radcom | 10.47% | 6.51% | 5.17% |
Insider and Institutional Ownership
22.7% of LM Funding America shares are held by institutional investors. Comparatively, 48.3% of Radcom shares are held by institutional investors. 15.0% of LM Funding America shares are held by insiders. Comparatively, 69.0% of Radcom shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares LM Funding America and Radcom”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LM Funding America | $8.85 million | 0.12 | -$26.92 million | ($60.51) | -0.01 |
| Radcom | $71.49 million | 2.39 | $11.99 million | $0.42 | 24.31 |
Radcom has higher revenue and earnings than LM Funding America. LM Funding America is trading at a lower price-to-earnings ratio than Radcom, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for LM Funding America and Radcom, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LM Funding America | 1 | 0 | 0 | 0 | 1.00 |
| Radcom | 0 | 2 | 1 | 0 | 2.33 |
Radcom has a consensus price target of $14.00, suggesting a potential upside of 37.12%. Given Radcom’s stronger consensus rating and higher probable upside, analysts plainly believe Radcom is more favorable than LM Funding America.
Summary
Radcom beats LM Funding America on 13 of the 14 factors compared between the two stocks.
About LM Funding America
LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.
About Radcom
RADCOM Ltd. provides 5G ready cloud-native, network intelligence, and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution (LTE), voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service. It sells its products directly to customers through executives and sales representatives, as well as through a network of distributors and resellers in North America, Asia Pacific, Latin America, Europe, the Middle East, Africa, and Israel. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was incorporated in 1985 and is headquartered in Tel Aviv, Israel.
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