Analyzing Criteo (NASDAQ:CRTO) & Ringcentral (NYSE:RNG)

Criteo (NASDAQ:CRTO) and Ringcentral (NYSE:RNG) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

Criteo has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Ringcentral has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Insider & Institutional Ownership

94.3% of Criteo shares are owned by institutional investors. Comparatively, 98.6% of Ringcentral shares are owned by institutional investors. 1.7% of Criteo shares are owned by company insiders. Comparatively, 7.0% of Ringcentral shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Criteo and Ringcentral’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Criteo	7.10%	16.91%	8.53%
Ringcentral	-0.50%	-19.63%	6.10%

Analyst Ratings

This is a summary of recent recommendations for Criteo and Ringcentral, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Criteo	1	4	5	0	2.40
Ringcentral	1	10	4	0	2.20

Criteo currently has a consensus price target of $40.00, suggesting a potential upside of 85.61%. Ringcentral has a consensus price target of $31.38, suggesting a potential upside of 12.11%. Given Criteo’s stronger consensus rating and higher probable upside, analysts clearly believe Criteo is more favorable than Ringcentral.

Earnings and Valuation

This table compares Criteo and Ringcentral”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Criteo	$1.93 billion	0.64	$111.57 million	$2.39	9.02
Ringcentral	$2.40 billion	1.06	-$58.29 million	($0.14)	-199.96

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

Summary

Criteo beats Ringcentral on 9 of the 14 factors compared between the two stocks.

About Criteo

Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. It also offers Criteo AI Engine solutions, including lookalike finder, recommendation, and predictive bidding algorithms; recommendation algorithms, dynamic creative optimization+, sponsored product placement algorithms, and other product placement algorithms. The company's technology comprises data synchronization, storage, and analysis of distributed computing infrastructure in various geographies, as well as fast data collection and retrieval using multi-layered caching infrastructure; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. In addition, it provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. Further, the company offers real-time advertising technology and trading infrastructure, delivering advanced media buying, selling, and packaging capabilities for media owners, agencies, performance advertisers, and third-party AdTech platforms. It serves companies in digital retail, travel, and classifieds sectors. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.

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.