Head to Head Comparison: RingCentral (NYSE:RNG) versus Agilysys (NASDAQ:AGYS)

Agilysys (NASDAQ:AGYS) and RingCentral (NYSE:RNG) are both mid-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Volatility and Risk

Agilysys has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, RingCentral has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

88.0% of Agilysys shares are owned by institutional investors. Comparatively, 98.6% of RingCentral shares are owned by institutional investors. 8.7% of Agilysys shares are owned by company insiders. Comparatively, 7.3% of RingCentral shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Agilysys and RingCentral”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agilysys	$319.31 million	8.79	$38.79 million	$1.51	65.89
RingCentral	$2.52 billion	2.63	$43.39 million	$1.25	63.30

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

Analyst Ratings

This is a summary of current ratings and price targets for Agilysys and RingCentral, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agilysys	0	3	5	0	2.62
RingCentral	0	8	4	0	2.33

Agilysys currently has a consensus price target of $124.60, indicating a potential upside of 25.23%. RingCentral has a consensus price target of $56.00, indicating a potential downside of 29.23%. Given Agilysys’ stronger consensus rating and higher probable upside, analysts clearly believe Agilysys is more favorable than RingCentral.

Profitability

This table compares Agilysys and RingCentral’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agilysys	12.99%	11.94%	8.20%
RingCentral	4.27%	-34.49%	13.89%

Summary

Agilysys beats RingCentral on 9 of the 14 factors compared between the two stocks.

About Agilysys

Agilysys, Inc. operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. It offers software solutions fully integrated with third party hardware and operating systems; cloud applications, support, and maintenance; subscription and maintenance; and professional services. The company’s hospitality software solutions include hospitality experience cloud offers solution ecosystems that combine core operational systems for property management, point-of-sale (POS), and inventory and procurement; and Hospitality Solution Studios. Its food and beverage ecosystem solutions comprise InfoGenesis POS; IG Kiosk; IG Flex; IG KDS; IG OnDemand; IG Fly; IG Quick Pay; IG Smart Menu; IG Digital Menu Board; IG PanOptic AI-powered self-checkout kiosk; Pay, a payment processing solution; eCash for cashless tender; gift card solution; and Analyze, a cloud-based data analytic platform. The company’s inventory and procurement ecosystem solutions include Eatec solution and Stratton Warren System; LMS, a on-premise or hosted, web and mobile-enabled PMS solution; Versa, a hospitality solution; and Stay, a cloud-native SaaS property management system. Its hospitality and leisure and experience enhancer solutions comprise Book, Express Kiosk and Express Mobile for check-in and check-out; Spa software; Golf; Sales & Catering; Service; Authorize; DataMagine; Reserve solution; Digital Marketing solution; Retail POS solution; Central Reservations; Loyalty & Promotions; Membership; Residence Management; and Guest App. It serves hotels, resorts and cruise lines, casinos, corporate food service management, restaurants, universities, stadiums, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1932 and is headquartered in Alpharetta, Georgia.

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.