Head to Head Analysis: CompuMed (OTCMKTS:CMPD) & RingCentral (NYSE:RNG)

CompuMed (OTCMKTS:CMPD) and RingCentral (NYSE:RNG) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
CompuMed 11.11% 27.58% 16.10%
RingCentral -9.78% -59.27% -6.55%

Insider & Institutional Ownership

84.3% of RingCentral shares are owned by institutional investors. 22.0% of CompuMed shares are owned by insiders. Comparatively, 7.4% of RingCentral shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares CompuMed 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
CompuMed $5.27 million 2.90 $340,000.00 N/A N/A
RingCentral $1.18 billion 17.36 -$83.00 million ($0.87) -258.17

CompuMed has higher earnings, but lower revenue than RingCentral.

Analyst Recommendations

This is a summary of current ratings and target prices for CompuMed and RingCentral, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CompuMed 0 0 0 0 N/A
RingCentral 0 2 13 1 2.94

RingCentral has a consensus target price of $431.16, indicating a potential upside of 91.96%. Given RingCentral’s higher probable upside, analysts clearly believe RingCentral is more favorable than CompuMed.

Risk and Volatility

CompuMed has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, RingCentral has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

CompuMed Company Profile

CompuMed, Inc. engages in the provision of enterprise telemedicine solutions. It specializes in telecardiology, teleradiology, osteoporosis and mobile diagnostics. The company was founded by Robert Stuckelman in 1973 and is headquartered in Los Angeles, CA.

RingCentral Company Profile

RingCentral, Inc. engages in the provision of global enterprise cloud communications and collaboration solutions. The firm’s solutions provide a single user identity across multiple locations and devices, including smartphones, tablets, PCs and desk phones; and allow for communication across multiple modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings and fax. It sells its products under the RingCentral Professional, RingCentral Glip, and RingCentral Fax brands. The company was founded by Vlad Vendrow and Vladimir Shmunis in 1999 and is headquartered in Belmont, CA.

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