Comparing Materialise NV (MTLS) & RADCOM (RDCM)

Materialise NV (NASDAQ: MTLS) and RADCOM (NASDAQ:RDCM) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

10.9% of Materialise NV shares are owned by institutional investors. Comparatively, 15.1% of RADCOM shares are owned by institutional investors. 69.0% of RADCOM shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Materialise NV and RADCOM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Materialise NV -0.99% -1.59% -0.76%
RADCOM -2.29% -1.99% -1.55%

Volatility & Risk

Materialise NV has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, RADCOM has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Materialise NV and RADCOM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Materialise NV 0 0 3 0 3.00
RADCOM 0 0 2 0 3.00

Materialise NV presently has a consensus price target of $14.17, indicating a potential downside of 1.00%. RADCOM has a consensus price target of $27.00, indicating a potential upside of 29.81%. Given RADCOM’s higher probable upside, analysts clearly believe RADCOM is more favorable than Materialise NV.

Earnings & Valuation

This table compares Materialise NV and RADCOM’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Materialise NV $150.43 million 4.50 $12.02 million ($0.03) -477.00
RADCOM $32.72 million 7.43 -$1.04 million ($0.11) -189.09

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

Summary

Materialise NV beats RADCOM on 8 of the 12 factors compared between the two stocks.

About Materialise NV

Materialise NV is a Belgium-based company engaged in the software industry. The Company is a provider of additive manufacturing software and of three dimensional (3D) printing services. Materialise NV incorporates of 3D printing experience into a range of software solution and 3D printing services, through which the Company seeks to form the backbone of the 3D printing industry. Its solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build 3D printing applications. The Company operates in the domestic market and worldwide, including Colombia, Brazil, Australia, Malaysia, China, Japan, Austria, Poland, Germany and France, among others.

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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