Analyzing Radcom (NASDAQ:RDCM) and Greenidge Generation (NASDAQ:GREE)

Radcom (NASDAQ:RDCM) and Greenidge Generation (NASDAQ:GREE) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Radcom and Greenidge Generation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Radcom	$71.49 million	2.41	$11.99 million	$0.42	24.50
Greenidge Generation	$60.37 million	0.39	$5.29 million	$0.38	3.71

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

Volatility and Risk

Radcom has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Greenidge Generation has a beta of 3.02, suggesting that its share price is 202% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Radcom and Greenidge Generation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Radcom	1	1	1	0	2.00
Greenidge Generation	1	0	0	0	1.00

Radcom currently has a consensus target price of $14.00, suggesting a potential upside of 36.05%. Given Radcom’s stronger consensus rating and higher possible upside, analysts plainly believe Radcom is more favorable than Greenidge Generation.

Insider & Institutional Ownership

48.3% of Radcom shares are owned by institutional investors. Comparatively, 8.5% of Greenidge Generation shares are owned by institutional investors. 69.0% of Radcom shares are owned by company insiders. Comparatively, 28.4% of Greenidge Generation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Radcom and Greenidge Generation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Radcom	10.47%	6.51%	5.17%
Greenidge Generation	10.38%	-12.10%	12.35%

Summary

Radcom beats Greenidge Generation on 12 of the 14 factors compared between the two stocks.

About Radcom

RADCOM Ltd. provides 5G ready cloud-native, network intelligence, and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution (LTE), voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service. It sells its products directly to customers through executives and sales representatives, as well as through a network of distributors and resellers in North America, Asia Pacific, Latin America, Europe, the Middle East, Africa, and Israel. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was incorporated in 1985 and is headquartered in Tel Aviv, Israel.

About Greenidge Generation

Greenidge Generation Holdings Inc. operates as an integrated cryptocurrency datacenter and power generation company. The company owns and operates cryptocurrency datacenter in New York, as well as hosts, powers, and provides technical support and other related services to bitcoin mining equipment owned by customers. It also owns and operates a 106 MW nameplate capacity power generation facility. The company was founded in 1937 and is based in Fairfield, Connecticut.