StockData

RingCentral vs Zoom Communications

RNG and ZM side by side, both in computer programming, data processing, and other computer related services. Figures are trailing twelve months unless noted, from SEC filings and end-of-day prices.

How RNG and ZM compare

Zoom Communications is the larger company, worth 4.1 times as much as RingCentral ($27.9B against $6.8B).

On earnings, Zoom Communications is cheaper: it trades at 8.8× trailing earnings, against 65.1× for RingCentral.

RingCentral grew revenue faster over the last twelve months (5.2% versus 5.0% for Zoom Communications).

Zoom Communications keeps more of each dollar of sales as profit, with a net margin of 65.2% compared with 4.3% at RingCentral.

RingCentral pays a dividend yielding 0.34%; Zoom Communications does not pay one.

Zoom Communications scores higher on the StockData Score (21 against 9 for RingCentral), which adds up 30 checks on valuation, growth, past performance, financial health and dividends.

Key numbers

A dot marks the better figure where higher or lower is clearly better.

MetricRNGZM
Size and price
Market cap$6.8B$27.9B
Share price$81.42$95.50
Change, 1 year174%14.6%
Change, 5 years−65.2%−63.9%
Beta (5Y)1.821.34
Employees7,3787,438
StockData Score
Total score921 (better)
Valuation score16 (better)
Growth score24 (better)
Performance score35 (better)
Health score26 (better)
Dividend score1 (better)0
Valuation
P/E65.1×8.8× (better)
P/S2.6× (better)5.6×
P/B–2.5×
EV/EBITDA19.5×15.7× (better)
P/FCF10.7× (better)14.5×
PEG–0.05
FCF yield9.4% (better)6.9%
Fair value$48.92$178.80
Margin of safety−66.4%46.6% (better)
Growth
Revenue growth (TTM)5.2% (better)5.0%
Revenue growth, 5Y average16.3% (better)12.9%
Net income growth (TTM)–174%
EPS growth (TTM)–185%
EPS growth, 5Y average–22.4%
Profitability
Gross margin71.8%77.3% (better)
Operating margin6.7%23.7% (better)
Net margin4.3%65.2% (better)
FCF margin24.7%38.6% (better)
Return on equity–32.1%
Return on invested capital31.4%35.3% (better)
Financial health
Debt / equity–0.00
Net debt / EBITDA2.52–
Interest coverage2.8×–
Current ratio1.113.83 (better)
Altman Z-score2.949.30 (better)
Piotroski F-score8 (better)7
Dividends and buybacks
Dividend yield0.34%–
Buyback yield6.3% (better)5.2%
Shareholder yield6.6% (better)5.2%
Ownership
Held by institutions104%69.5%
Held by insiders6.3%9.2%
Insider net buying, 12 months−$24.0M (better)−$90.5M
Superinvestors holding12 (better)
Short interest, % of float9.1%2.4%

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For information only, not investment advice. Check the source filings before relying on any figure.