Radcom Story

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RDCM -- USA Stock  

USD 9.48  0.03  0.32%

It looks like Verizon Communications will continue to recover much faster as its share price surged up 0.79% today to Radcom's 3.4682%. As many millenniums are getting more into communication services space, we are going to summarize Radcom and Verizon Communications as potential short-term trade. We are going to summarize some of the competitive aspects of both Radcom and Verizon.
Published over a month ago
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Will Verizon Communications (NYSE:VZ) and Radcom (NASDAQ:RDCM) deliver in September?
By analyzing existing basic indicators between Radcom and Verizon, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Verizon with a short position in Radcom. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Radcom has an asset utilization ratio of 175.27 percent. This denotes that the company is making $1.75 for each dollar of assets. An increasing asset utilization means that Radcom is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Radcom or Softbank is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Radcom's Liquidity

Radcom financial leverage refers to using borrowed capital as a funding source to finance Radcom ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Radcom financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Radcom's total debt and its cash.

Correlation Between Radcom and Softbank Corp ADR

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Radcom together with similar or unrelated positions with a negative correlation. For example, you can also add Softbank Corp to your portfolio. If Softbank Corp is not perfectly correlated to Radcom it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Radcom for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between RDCM and SOBKY for more information.

Note

Are you currently holding both Radcom and Softbank Corp in your portfolio? Please note if you are using this as a pair-trade strategy between Radcom and Softbank Corp, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

A Deeper look at Radcom

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Radcom revenue. Based on the latest financial disclosure, Radcom reported 35.29 M of revenue. This is 99.76% lower than that of the Communication Services sector and 99.84% lower than that of the Telecom Services industry. The revenue for all United States stocks is 99.63% higher than that of Radcom. As for Verizon Communications we see revenue of 129.73 B, which is much higher than that of the Telecom Services

VZ
129.7 B
RDCM35.29 Million0.0254
Sector9.43 Billion6.78
VZ129.73 Billion93.2

Over 3 percent hike for Radcom. What does it mean for stakeholders?

The skewness is down to 0.76 as of today. Radcom currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.36. However, we do advice investors to further question Radcom expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Radcom

While other entities within the telecom services industry are still a little expensive, even after the recent corrections, Radcom may offer a potential longer-term growth to stakeholders. To conclude, as of the 11th of August 2020, we believe that at this point, Radcom is undervalued with very small chance of bankruptcy within the next 2 years. Our present buy-hold-sell recommendation on the company is Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Radcom. Please refer to our Terms of Use for any information regarding our disclosure principles.

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