Head-To-Head Review: RingCentral (RNG) and Shotspotter (SSTI)

Shotspotter (NASDAQ: SSTI) and RingCentral (NYSE:RNG) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Earnings and Valuation

This table compares Shotspotter and RingCentral’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shotspotter $15.50 million 10.10 -$6.86 million ($0.85) -19.08
RingCentral $379.72 million 10.84 -$29.30 million ($0.36) -147.78

Shotspotter has higher earnings, but lower revenue than RingCentral. RingCentral is trading at a lower price-to-earnings ratio than Shotspotter, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

24.4% of Shotspotter shares are held by institutional investors. Comparatively, 76.3% of RingCentral shares are held by institutional investors. 14.5% of RingCentral shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Shotspotter and RingCentral, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shotspotter 0 0 3 0 3.00
RingCentral 0 3 11 0 2.79

Shotspotter currently has a consensus price target of $21.00, indicating a potential upside of 29.47%. RingCentral has a consensus price target of $44.62, indicating a potential downside of 16.14%. Given Shotspotter’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Shotspotter is more favorable than RingCentral.

Profitability

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

Net Margins Return on Equity Return on Assets
Shotspotter N/A N/A N/A
RingCentral -5.80% -17.97% -9.86%

Summary

Shotspotter beats RingCentral on 7 of the 13 factors compared between the two stocks.

About Shotspotter

ShotSpotter, Inc. is engaged in designing and delivering gunfire alert and analysis solutions. The Company offers its software solutions on a SaaS-based subscription model. It has one operating segment with one business activity, providing gunshot detection systems. Its safety solutions include ShotSpotter Flex, ShotSpotter (SST) SecureCampus and ShotSpotter SiteSecure. ShotSpotter Flex is an outdoor public safety solution, serves cities and municipalities seeking to identify, locate and deter persistent a real-time gunshot detection system into their policing systems. SST SecureCampus is integrates its indoor and outdoor solutions in order to help the law enforcement and security personnel serving universities, colleges and other educational institutions. ShotSpotter SiteSecure is integrates its indoor and outdoor solutions for customers such as corporations trying to safeguard their facilities and public agencies focused on protecting critical infrastructure.

About RingCentral

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.

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