Comparing Bitauto (BITA) and RingCentral (RNG)
Bitauto (NYSE: RNG) and RingCentral (NYSE:RNG) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
35.0% of Bitauto shares are held by institutional investors. Comparatively, 77.3% of RingCentral shares are held by institutional investors. 17.0% of Bitauto shares are held by company insiders. Comparatively, 12.0% of RingCentral shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Bitauto and RingCentral’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Bitauto has a beta of 3.11, suggesting that its share price is 211% more volatile than the S&P 500. Comparatively, RingCentral has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Bitauto and RingCentral, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bitauto presently has a consensus target price of $28.67, indicating a potential upside of 24.42%. RingCentral has a consensus target price of $86.75, indicating a potential downside of 6.17%. Given Bitauto’s higher possible upside, equities research analysts plainly believe Bitauto is more favorable than RingCentral.
Earnings & Valuation
This table compares Bitauto and RingCentral’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bitauto||$1.30 billion||1.28||-$260.34 million||($3.42)||-6.74|
|RingCentral||$501.53 million||14.68||-$26.14 million||($0.35)||-264.14|
RingCentral has lower revenue, but higher earnings than Bitauto. RingCentral is trading at a lower price-to-earnings ratio than Bitauto, indicating that it is currently the more affordable of the two stocks.
RingCentral beats Bitauto on 9 of the 13 factors compared between the two stocks.
Bitauto Holdings Limited, through its subsidiaries, provides Internet content and marketing services, and transaction services for the automobile industry in the People's Republic of China. It operates in three segments: Advertising and Subscription Business, Transaction Services Business, and Digital Marketing Solutions Business. The Advertising and Subscription Business segment offers advertising services, including automobile pricing and promotional information, specifications, reviews, and consumer feedback to automakers through its bitauto.com Website and related mobile applications. It also provides transaction-focused online advertisement and promotional services for automakers, automobile dealers, auto finance partners, and insurance companies; and Web-based and mobile-based integrated digital marketing solutions to automobile dealers. The Transaction Services Business segment operates an online automobile retail transaction platform, which provides transaction platform and self-operated financing services. The Digital Marketing Solutions Business segment offers one-stop digital marketing solutions, including Website creation and maintenance, online public relation, online marketing campaign, advertising agency, big data application, and digital image creation services for automakers. The company also distributes its dealer customers' automobile pricing and promotional information through its Internet service provider partners. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People's Republic of China.
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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