Contrasting RingCentral (NYSE:RNG) and JOYY (NASDAQ:YY)

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

Valuation & Earnings

This table compares JOYY and RingCentral’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOYY	$2.27 billion	0.91	$301.82 million	$4.97	6.69
RingCentral	$2.20 billion	1.26	-$165.24 million	($1.75)	-17.14

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

Insider and Institutional Ownership

36.8% of JOYY shares are held by institutional investors. Comparatively, 98.6% of RingCentral shares are held by institutional investors. 43.0% of JOYY shares are held by company insiders. Comparatively, 6.8% of RingCentral shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOYY	0	3	0	0	2.00
RingCentral	0	8	7	1	2.56

JOYY currently has a consensus price target of $42.00, indicating a potential upside of 26.28%. RingCentral has a consensus price target of $38.56, indicating a potential upside of 28.52%. Given RingCentral’s stronger consensus rating and higher possible upside, analysts plainly believe RingCentral is more favorable than JOYY.

Risk & Volatility

JOYY has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, RingCentral has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JOYY	13.31%	5.13%	3.15%
RingCentral	-7.50%	N/A	-3.02%

Summary

JOYY beats RingCentral on 8 of the 15 factors compared between the two stocks.

About JOYY

JOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video-based social platforms. The company operates Bigo Live, a social live streaming platform that allows users to live stream specific moments, such as showcase talents, socialize, and connect with other users worldwide; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a multiuser social networking platform that provides casual games; imo, an instant messaging application with functions, including video calls and other communication tools, such as group calls, document sharing, etc.; and Shopline, a smart commerce enabler that provides an integrated omnichannel platform for merchants to create and grow brands online and reach customers. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, Southeast Asia, and internationally. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.

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.