Radcom (NASDAQ:RDCM – Get Free Report) and LM Funding America (NASDAQ:PWCM – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Insider & Institutional Ownership
48.3% of Radcom shares are owned by institutional investors. Comparatively, 22.7% of LM Funding America shares are owned by institutional investors. 69.0% of Radcom shares are owned by company insiders. Comparatively, 15.0% of LM Funding America shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Radcom and LM Funding America”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 | 2.39 | $11.99 million | $0.42 | 24.26 |
| LM Funding America | $8.85 million | 0.13 | -$26.92 million | ($60.51) | -0.01 |
Radcom has higher revenue and earnings than LM Funding America. LM Funding America is trading at a lower price-to-earnings ratio than Radcom, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for Radcom and LM Funding America, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Radcom | 0 | 2 | 1 | 0 | 2.33 |
| LM Funding America | 1 | 0 | 0 | 0 | 1.00 |
Radcom currently has a consensus target price of $14.00, suggesting a potential upside of 37.39%. Given Radcom’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Radcom is more favorable than LM Funding America.
Profitability
This table compares Radcom and LM Funding America’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% |
| LM Funding America | -413.92% | -132.69% | -78.02% |
Risk and Volatility
Radcom has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, LM Funding America has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500.
Summary
Radcom beats LM Funding America on 12 of the 13 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 LM Funding America
LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.
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