GTY Technology (NASDAQ:GTYH) and RingCentral (NYSE:RNG) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares GTY Technology and RingCentral’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GTY Technology N/A -22.48% -14.13%
RingCentral -4.06% -1.61% -0.56%

Insider and Institutional Ownership

28.7% of GTY Technology shares are held by institutional investors. Comparatively, 84.0% of RingCentral shares are held by institutional investors. 24.7% of GTY Technology shares are held by company insiders. Comparatively, 11.0% of RingCentral shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

GTY Technology has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500. Comparatively, RingCentral has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GTY Technology 0 1 1 0 2.50
RingCentral 0 2 14 1 2.94

GTY Technology currently has a consensus target price of $8.50, suggesting a potential upside of 81.24%. RingCentral has a consensus target price of $159.81, suggesting a potential downside of 3.42%. Given GTY Technology’s higher possible upside, equities analysts plainly believe GTY Technology is more favorable than RingCentral.

Valuation & Earnings

This table compares GTY Technology and RingCentral’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GTY Technology N/A N/A $1.80 million N/A N/A
RingCentral $673.62 million 20.62 -$26.20 million ($0.04) -4,137.00

GTY Technology has higher earnings, but lower revenue than RingCentral.

Summary

RingCentral beats GTY Technology on 8 of the 12 factors compared between the two stocks.

GTY Technology Company Profile

GTY Technology Holdings Inc. provides cloud-based suite of solutions for state and local governments in North America. The company develops software technologies for the procurement and vendor or supplier sourcing industry in government, public sector, and various highly-regulated commercial vertical markets; content, digital, and integrated payment services via a software-as-a-service platform for government agencies and utility companies. It also develops cloud-based grants management and cost allocation software for state, local, and tribal governments; software to streamline municipal permissions and licenses; budgeting software, performance management, and transparency and data visualization solutions; and public sector budgeting and consulting services. GTY Technology Holdings Inc. was founded in 2016 and is based in Las Vegas, Nevada.

RingCentral Company Profile

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America. The company's products include RingCentral Office, provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax through smartphones, tablets, PCs, and desk phones; RingCentral Professional, a cloud based virtual telephone service for professionals, as well as provides inbound call answering and management services, and includes inbound local, long-distance, and toll-free minutes; and RingCentral Fax that provides online fax capabilities that allow businesses to send and receive fax documents without a fax machine. Its products also comprise RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; 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. The company 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. It sells its products through a network of direct sales representatives, as well as sales agents and channel partners. The company was incorporated in 1999 and is headquartered in Belmont, California.

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