ZIX (NASDAQ:ZIXI) and RingCentral (NYSE:RNG) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Valuation and Earnings
This table compares ZIX and RingCentral’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ZIX||$65.66 million||5.07||-$8.05 million||$0.08||76.75|
|RingCentral||$501.53 million||13.96||-$26.14 million||($0.35)||-249.09|
Institutional & Insider Ownership
71.3% of ZIX shares are held by institutional investors. Comparatively, 78.0% of RingCentral shares are held by institutional investors. 3.7% of ZIX shares are held by company insiders. Comparatively, 12.0% of RingCentral shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for ZIX and RingCentral, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ZIX currently has a consensus price target of $7.17, suggesting a potential upside of 16.72%. RingCentral has a consensus price target of $92.07, suggesting a potential upside of 5.61%. Given ZIX’s higher probable upside, analysts clearly believe ZIX is more favorable than RingCentral.
Risk and Volatility
ZIX has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, RingCentral has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
This table compares ZIX and RingCentral’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
RingCentral beats ZIX on 8 of the 14 factors compared between the two stocks.
Zix Corporation provides email encryption, threat protection, archiving, bring-your-own-device security, and data loss prevention solutions for the healthcare, financial services, insurance, and government sectors primarily in the United States. The company offers Zix Email Encryption that allows an enterprise to use policy-driven rules to determine email messages that should be sent securely to comply with regulations or company-defined policies. It a0lso provides ZixDirectory, an email encryption community to share identities; Best Method of Delivery, a protocol that automatically determines means of delivery based on the sender's and recipient's communications environment and preferences; and ZixEncrypt, which automatically encrypts and decrypts messages with sensitive content. In addition, the company offers ZixProtect that defends organizations from zero-day malware, ransomware, phishing, CEO fraud, W-2 phishing attacks, spam, and viruses in email; and ZixArchive, a cloud-based email retention solution that enables user retrieval, compliance, and e-discovery. Further, it provides ZixOne, a mobile email app, which offers access to corporate email while never allowing that data to be persistently stored on the device where it is vulnerable to loss or theft. Zix Corporation offers its services through a direct sales force; and a network of resellers and other distribution partners. It has strategic partnership with Digital Guardian to deliver email encryption with enterprise data loss prevention. The company was formerly known as ZixIt Corporation and changed its name to Zix Corporation in 2002. Zix Corporation was founded in 1983 and is headquartered in Dallas, Texas.
RingCentral, Inc. provides software-as-a-service solutions for business communications and collaboration primarily in the United States. The company's products include RingCentral Office, a multi-tenant, multi-location, and enterprise-grade communications and collaboration solution that enables employees to communicate through voice, text, team messaging and collaboration, and HD video and Web conferencing through smartphones, tablets, PCs, and desk phones for businesses, which require a communications solution; RingCentral Professional, an inbound call routing subscription with additional text and fax capabilities primarily for smaller businesses; and RingCentral Fax solution that offers Internet fax capabilities, which allow businesses to send and receive fax documents without the need for a fax machine. Its products also comprise RingCentral Contact Center that provides a cloud based contact center solution, which delivers omni-channel capabilities; 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. RingCentral, Inc. 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. The company sells its products through a network of direct sales representatives, as well as sales agents and channel partners. RingCentral, Inc. was founded in 1999 and is headquartered in Belmont, California.
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