Xunlei (NASDAQ:XNET – Get Free Report) and RingCentral (NYSE:RNG – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Profitability
This table compares Xunlei and RingCentral’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xunlei | -15.25% | 0.62% | 0.52% |
| RingCentral | 4.27% | -34.49% | 13.89% |
Valuation & Earnings
This table compares Xunlei and RingCentral”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xunlei | $462.41 million | 0.70 | $1.05 billion | ($1.24) | -4.08 |
| RingCentral | $2.52 billion | 2.48 | $43.39 million | $1.25 | 59.76 |
Xunlei has higher earnings, but lower revenue than RingCentral. Xunlei is trading at a lower price-to-earnings ratio than RingCentral, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for Xunlei and RingCentral, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xunlei | 0 | 1 | 0 | 0 | 2.00 |
| RingCentral | 0 | 8 | 4 | 0 | 2.33 |
RingCentral has a consensus price target of $56.00, indicating a potential downside of 25.03%. Given RingCentral’s stronger consensus rating and higher possible upside, analysts clearly believe RingCentral is more favorable than Xunlei.
Volatility & Risk
Xunlei has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, RingCentral has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Insider & Institutional Ownership
5.1% of Xunlei shares are held by institutional investors. Comparatively, 98.6% of RingCentral shares are held by institutional investors. 21.7% of Xunlei shares are held by company insiders. Comparatively, 7.3% of RingCentral shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
RingCentral beats Xunlei on 10 of the 13 factors compared between the two stocks.
About Xunlei
Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.
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.
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