Head-To-Head Contrast: GTY Technology (NASDAQ:GTYH) & RingCentral (NASDAQ:RNG)

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

Volatility and Risk

GTY Technology has a beta of -0.32, meaning that its stock price is 132% less volatile than the S&P 500. Comparatively, RingCentral has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Valuation and Earnings

This table compares GTY Technology and RingCentral’s top-line 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 21.49 -$26.20 million ($0.04) -4,311.75

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

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%

Analyst Ratings

This is a summary of current ratings for GTY Technology and RingCentral, as reported 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 price target of $8.50, suggesting a potential upside of 72.41%. RingCentral has a consensus price target of $161.69, suggesting a potential downside of 6.25%. Given GTY Technology’s higher possible upside, equities research analysts plainly believe GTY Technology is more favorable than RingCentral.

Insider & Institutional Ownership

28.7% of GTY Technology shares are owned by institutional investors. Comparatively, 84.0% of RingCentral shares are owned by institutional investors. 24.7% of GTY Technology shares are owned by insiders. Comparatively, 11.0% of RingCentral shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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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