Cloopen Group (NYSE:RAAS – Get Rating) and LivePerson (NASDAQ:LPSN – Get Rating) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.
Insider and Institutional Ownership
4.6% of Cloopen Group shares are owned by institutional investors. Comparatively, 88.4% of LivePerson shares are owned by institutional investors. 9.8% of Cloopen Group shares are owned by insiders. Comparatively, 9.0% of LivePerson shares are owned by 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.
Risk and Volatility
Cloopen Group has a beta of -0.57, meaning that its stock price is 157% less volatile than the S&P 500. Comparatively, LivePerson has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LivePerson has a consensus price target of $18.27, indicating a potential upside of 54.07%. Given LivePerson’s higher probable upside, analysts plainly believe LivePerson is more favorable than Cloopen Group.
This table compares Cloopen Group and LivePerson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Cloopen Group and LivePerson’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cloopen Group||$117.65 million||1.37||-$75.43 million||($15.64)||-0.06|
|LivePerson||$469.62 million||1.89||-$124.97 million||($3.01)||-3.94|
Cloopen Group has higher earnings, but lower revenue than LivePerson. LivePerson is trading at a lower price-to-earnings ratio than Cloopen Group, indicating that it is currently the more affordable of the two stocks.
LivePerson beats Cloopen Group on 7 of the 13 factors compared between the two stocks.
About Cloopen Group
Cloopen Group Holding Limited, through its subsidiaries, provides cloud-based communications solutions in the People's Republic of China. The company offers a suite of cloud-based communications solutions, which include communications platform as a service solution that provides application programing interfaces and software development kits to embed messaging, voice call, audio and video, instant messaging, and other communications into enterprises' applications, services, and/or business processes; cloud-based contact centers, which offers RongCC and 7moor Cloud solutions; and cloud-based unified communications and collaborations, such as RongVideo that provides instant messaging, audio and video conferencing, and telephony solutions. It serves a customer base consisting of enterprises of various industries, including internet, telecommunications, financial services, education, industrial manufacturing, and energy. The company was founded in 2012 and is headquartered in Beijing, China.
LivePerson, Inc., together with its subsidiaries, provides conversational commerce software and Gainshare solutions. It operates in two segments, Business and Consumer. The Business segment enables brands to leverage LiveEngage's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The Consumer segment facilitates online transactions between experts and users seeking information and knowledge through mobile and online messaging. The company offers the Conversational Cloud, an enterprise-class and cloud-based platform, which enables businesses and consumers to connect through conversational interfaces, such as in-app and mobile messaging. It also provides professional services and value-added business consulting services. The company sells its products through direct and indirect sales channels to Fortune 500 companies, Internet businesses, online merchants, small businesses, automotive dealers, universities, libraries, government agencies, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, and the Asia-Pacific region. The company has strategic partnerships with TTEC that focuses on customer experience; and DMI to redefine customer experience with digital engagement, messaging, and artificial intelligence driven automation. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.
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