Radcom (NASDAQ:RDCM – Get Free Report) and Greenidge Generation (NASDAQ:GREE – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Volatility & Risk
Radcom has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Greenidge Generation has a beta of 3.02, indicating that its share price is 202% more volatile than the S&P 500.
Valuation & Earnings
This table compares Radcom and Greenidge Generation”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Radcom | $67.59 million | 2.52 | $11.99 million | $0.42 | 24.21 |
| Greenidge Generation | $60.37 million | 0.39 | $5.29 million | $0.38 | 3.71 |
Radcom has higher revenue and earnings than Greenidge Generation. Greenidge Generation is trading at a lower price-to-earnings ratio than Radcom, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
48.3% of Radcom shares are held by institutional investors. Comparatively, 8.5% of Greenidge Generation shares are held by institutional investors. 69.0% of Radcom shares are held by company insiders. Comparatively, 28.4% of Greenidge Generation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Radcom and Greenidge Generation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Radcom | 10.47% | 6.51% | 5.17% |
| Greenidge Generation | 10.38% | -12.10% | 12.35% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Radcom and Greenidge Generation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Radcom | 1 | 1 | 1 | 0 | 2.00 |
| Greenidge Generation | 1 | 0 | 0 | 0 | 1.00 |
Radcom currently has a consensus target price of $14.00, indicating a potential upside of 37.66%. Given Radcom’s stronger consensus rating and higher possible upside, research analysts plainly believe Radcom is more favorable than Greenidge Generation.
Summary
Radcom beats Greenidge Generation on 12 of the 14 factors compared between the two stocks.
About Radcom
RADCOM Ltd. provides 5G ready cloud-native, network intelligence, and service assurance solutions for telecom operators or communication service providers (CSPs). It offers RADCOM ACE, including RADCOM Service Assurance, a cloud-native, 5G-ready, and virtualized service assurance solutions, which allows telecom operators to gain end-to-end network visibility and customer experience insights across all networks; RADCOM Network Visibility, a cloud-native network packet broker and filtering solution that allows CSPs to manage network traffic at scale across multiple cloud environments, and control the visibility layer to perform analysis of select datasets; and RADCOM Network Insights, a business intelligence solution that offers insights for multiple use cases enabled by data captured and correlated through RADCOM Network Visibility and RADCOM Service Assurance. The company also provides solutions for mobile and fixed networks, such as 5G, long term evolution (LTE), voice over LTE, voice over Wifi, IP multimedia subsystem, voice over IP, and universal mobile telecommunication service. It sells its products directly to customers through executives and sales representatives, as well as through a network of distributors and resellers in North America, Asia Pacific, Latin America, Europe, the Middle East, Africa, and Israel. The company was formerly known as Big Blue Catalogue Ltd. and changed its name to RADCOM Ltd. in 1989. RADCOM Ltd. was incorporated in 1985 and is headquartered in Tel Aviv, Israel.
About Greenidge Generation
Greenidge Generation Holdings Inc. operates as an integrated cryptocurrency datacenter and power generation company. The company owns and operates cryptocurrency datacenter in New York, as well as hosts, powers, and provides technical support and other related services to bitcoin mining equipment owned by customers. It also owns and operates a 106 MW nameplate capacity power generation facility. The company was founded in 1937 and is based in Fairfield, Connecticut.
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