Comparing Radcom (RDCM) & Its Competitors

Radcom (NASDAQ: RDCM) is one of 22 public companies in the “Computer Peripherals” industry, but how does it compare to its rivals? We will compare Radcom to similar companies based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares Radcom and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Radcom -3.90% -2.19% -1.64%
Radcom Competitors -46.45% -19.80% -8.97%

Valuation & Earnings

This table compares Radcom and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Radcom $32.72 million -$1.04 million -179.09
Radcom Competitors $1.24 billion $53.01 million -40.63

Radcom’s rivals have higher revenue and earnings than Radcom. Radcom is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Radcom has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Radcom’s rivals have a beta of 0.91, suggesting that their average share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Radcom and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Radcom 0 0 2 0 3.00
Radcom Competitors 107 331 453 21 2.43

Radcom currently has a consensus price target of $27.00, indicating a potential upside of 37.06%. As a group, “Computer Peripherals” companies have a potential upside of 25.28%. Given Radcom’s stronger consensus rating and higher probable upside, research analysts clearly believe Radcom is more favorable than its rivals.

Insider & Institutional Ownership

15.1% of Radcom shares are held by institutional investors. Comparatively, 35.6% of shares of all “Computer Peripherals” companies are held by institutional investors. 69.0% of Radcom shares are held by company insiders. Comparatively, 18.1% of shares of all “Computer Peripherals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Radcom beats its rivals on 8 of the 12 factors compared.

About Radcom

RADCOM Ltd. (RADCOM) provides service assurance and customer experience management solutions for communication service providers (CSPs). The Company provides solutions for networks, including long-term evolution (LTE), LTE Advanced (LTE-A), voice over LTE (VoLTE), Internet protocol multimedia subsystem (IMS), Voice over Internet protocol (VoIP), universal mobile telecommunications system (UMTS) or global system for mobile communications (GSM) and mobile broadband. Its software-based solutions enable CSPs to manage both existing networks and network functions virtualization (NFV) based architectures. Its products and solutions include The MaveriQ Solution for Service Assurance and customer experience management (CEM). The MaveriQ solution is a probe-based customer and service assurance solution designed to enable CSPs to carry out end-to-end voice and data quality monitoring and to manage their networks and services. The MaveriQ solution offers analysis and troubleshooting tools.

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