Radcom (NASDAQ: RDCM) is one of 23 public companies in the “Computer Peripherals” industry, but how does it contrast to its peers? We will compare Radcom to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Radcom and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radcom 0 0 2 0 3.00
Radcom Competitors 107 338 458 21 2.43

Radcom currently has a consensus price target of $27.00, suggesting a potential upside of 28.27%. As a group, “Computer Peripherals” companies have a potential upside of 18.42%. Given Radcom’s stronger consensus rating and higher possible upside, analysts clearly believe Radcom is more favorable than its peers.

Risk & Volatility

Radcom has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Radcom’s peers have a beta of 0.91, meaning that their average stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Radcom and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Radcom -3.90% -2.19% -1.64%
Radcom Competitors -43.29% -18.86% -8.39%

Institutional & Insider Ownership

15.1% of Radcom shares are owned by institutional investors. Comparatively, 35.5% of shares of all “Computer Peripherals” companies are owned by institutional investors. 69.0% of Radcom shares are owned by company insiders. Comparatively, 18.1% of shares of all “Computer Peripherals” companies are owned 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.

Valuation & Earnings

This table compares Radcom and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Radcom $32.72 million -$1.04 million -191.36
Radcom Competitors $1.24 billion $53.00 million -43.54

Radcom’s peers have higher revenue and earnings than Radcom. Radcom is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Radcom beats its peers on 8 of the 12 factors compared.

About Radcom

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.

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