Head-To-Head Comparison: Ringcentral (RNG) & Mitel Networks Corporation (MITL)
Ringcentral (NYSE: RNG) and Mitel Networks Corporation (NASDAQ:MITL) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
Risk and Volatility
Ringcentral has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Mitel Networks Corporation has a beta of 2.68, indicating that its share price is 168% more volatile than the S&P 500.
Earnings and Valuation
This table compares Ringcentral and Mitel Networks Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ringcentral||$432.57 million||7.40||-$12.96 million||($0.39)||-107.05|
|Mitel Networks Corporation||$956.00 million||1.04||$103.40 million||($1.63)||-5.15|
Mitel Networks Corporation has higher revenue and earnings than Ringcentral. Ringcentral is trading at a lower price-to-earnings ratio than Mitel Networks Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Ringcentral and Mitel Networks Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mitel Networks Corporation||0||1||1||0||2.50|
Ringcentral currently has a consensus target price of $39.17, suggesting a potential downside of 6.19%. Mitel Networks Corporation has a consensus target price of $9.25, suggesting a potential upside of 10.25%. Given Mitel Networks Corporation’s higher probable upside, analysts plainly believe Mitel Networks Corporation is more favorable than Ringcentral.
Institutional and Insider Ownership
75.2% of Ringcentral shares are held by institutional investors. Comparatively, 79.2% of Mitel Networks Corporation shares are held by institutional investors. 14.5% of Ringcentral shares are held by insiders. Comparatively, 16.5% of Mitel Networks Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Ringcentral and Mitel Networks Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mitel Networks Corporation||-20.50%||4.69%||1.39%|
Mitel Networks Corporation beats Ringcentral 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.
About Mitel Networks Corporation
Mitel Networks Corporation is a provider of business communications and collaboration software, services and solutions. The Company’s segments include Cloud and Enterprise. The Enterprise segment sells and supports products and services for premise-based customers. The Cloud segment sells and supports products that are deployed in a cloud environment. The Company’s product portfolio includes premises and cloud-based enterprise communications infrastructure products and solutions, unified communications and collaboration (UCC) and contact center applications and a range of service offerings. The Company’s Cloud Division offers a range of private, public, hybrid and mobile Software as a Service (SaaS) solutions for businesses of all sizes. This includes Unified Communications as a Service (UCaaS) solutions. Its Enterprise Division portfolio integrates voice, UCC applications, and contact center applications on fixed and mobile networks across a range of end user devices.
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