Contrasting Radcom (RDCM) and Crossroads Systems (CRDS)
Radcom (NASDAQ: RDCM) and Crossroads Systems (NASDAQ:CRDS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
This is a summary of current ratings and target prices for Radcom and Crossroads Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Radcom currently has a consensus price target of $27.00, indicating a potential upside of 44.39%. Given Radcom’s higher probable upside, equities research analysts clearly believe Radcom is more favorable than Crossroads Systems.
This table compares Radcom and Crossroads Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
15.0% of Radcom shares are held by institutional investors. Comparatively, 7.5% of Crossroads Systems shares are held by institutional investors. 69.0% of Radcom shares are held by company insiders. Comparatively, 27.4% of Crossroads Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Radcom and Crossroads Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Radcom||$32.72 million||6.68||-$1.04 million||($0.11)||-170.00|
Crossroads Systems has higher revenue, but lower earnings than Radcom. Radcom is trading at a lower price-to-earnings ratio than Crossroads Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Radcom has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Crossroads Systems has a beta of 2.75, indicating that its stock price is 175% more volatile than the S&P 500.
Radcom beats Crossroads Systems on 9 of the 10 factors compared between the two stocks.
RADCOM Ltd. (RADCOM) provides service assurance and customer experience management solutions for communication service providers (CSPs). The Company provides solutions for networks, including long-term evolution (LTE), LTE Advanced (LTE-A), voice over LTE (VoLTE), Internet protocol multimedia subsystem (IMS), Voice over Internet protocol (VoIP), universal mobile telecommunications system (UMTS) or global system for mobile communications (GSM) and mobile broadband. Its software-based solutions enable CSPs to manage both existing networks and network functions virtualization (NFV) based architectures. Its products and solutions include The MaveriQ Solution for Service Assurance and customer experience management (CEM). The MaveriQ solution is a probe-based customer and service assurance solution designed to enable CSPs to carry out end-to-end voice and data quality monitoring and to manage their networks and services. The MaveriQ solution offers analysis and troubleshooting tools.
About Crossroads Systems
Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.
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