Critical Analysis: Ringcentral (NYSE:RNG) and Nebius Group (NASDAQ:NBIS)

Nebius Group (NASDAQ:NBIS) and Ringcentral (NYSE:RNG) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Risk and Volatility

Nebius Group has a beta of 3.45, indicating that its share price is 245% more volatile than the S&P 500. Comparatively, Ringcentral has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Nebius Group and Ringcentral, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nebius Group	0	2	5	2	3.00
Ringcentral	1	10	4	0	2.20

Nebius Group presently has a consensus target price of $91.20, suggesting a potential downside of 27.52%. Ringcentral has a consensus target price of $31.38, suggesting a potential upside of 17.54%. Given Ringcentral’s higher probable upside, analysts plainly believe Ringcentral is more favorable than Nebius Group.

Valuation and Earnings

This table compares Nebius Group 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
Nebius Group	$117.50 million	252.46	-$641.40 million	($0.57)	-220.75
Ringcentral	$2.40 billion	1.01	-$58.29 million	($0.14)	-190.72

Ringcentral has higher revenue and earnings than Nebius Group. Nebius Group is trading at a lower price-to-earnings ratio than Ringcentral, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nebius Group and Ringcentral’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nebius Group	99.34%	6.14%	5.32%
Ringcentral	-0.50%	-19.63%	6.10%

Institutional & Insider Ownership

21.9% of Nebius Group shares are owned by institutional investors. Comparatively, 98.6% of Ringcentral shares are owned by institutional investors. 7.0% of Ringcentral shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Ringcentral beats Nebius Group on 8 of the 15 factors compared between the two stocks.

About Nebius Group

Nebius Group N.V., a technology company, builds intelligent products and services powered by machine learning and other technologies to help consumers and businesses navigate the online and offline world. The company’s services include Nebius AI, an AI-centric cloud platform that offers infrastructure and computing capability for AI deployment and machine-learning oriented solutions; and Toloka AI that offers generative AI (GenAI) solutions at every stage of the GenAI lifecycle, such as data annotation and generation, model training and fine-tuning, and quality assessment of large language model for accuracy and reliability. It also offers Avride, an autonomous driving solution which targets ride-hailing, logistics, e-commerce, and food/grocery delivery as application domains, as well as focuses on autonomous vehicles and delivery robots; and TripleTen, an EdTech service that prepares specialists for STEM roles, and equipping them with essential technology skills. The company was formerly known as Yandex N.V. and changed its name to Nebius Group N.V. in August 2024. Nebius Group N.V. was founded in 1989 and is based in Schiphol, the Netherlands.

About Ringcentral

RingCentral, Inc., together with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company’s products include RingCentral Message Video Phone that provides a unified experience for communication and collaboration across multiple modes, including HD voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions with integrated RingCentral MVP; and RingCX, an AI-powered contact center that a native delivers omnichannel experience. It provides RingCentral Video, a video meeting service that includes the company’s RCV video and team messaging capabilities; offers video and audio conferencing, team messaging, file sharing, contact, task, and calendar management, as well as pre-meeting, in-meeting, and post-meeting capabilities. In addition, the company offers RingCentral Professional Services, which include consultation, UCaaS and CCaaS implementation, VoIP phone system adoption, configuring custom workflows, customer and user onboarding, ongoing support, advanced support, managed services, and more. It serves a range of industries, including financial services, education, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, state and local government, and others. It sells its products to enterprise customers, as well as small and medium-sized businesses through resellers and distributors, partners, and global service providers. RingCentral, Inc. was incorporated in 1999 and is headquartered in Belmont, California.