Analyzing Castlight Health, inc. (CSLT) & Square (SQ)
Square (NYSE: SQ) and Castlight Health, inc. (NYSE:CSLT) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitabiliy, institutional ownership, risk, analyst recommendations and earnings.
This table compares Square and Castlight Health, inc.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Castlight Health, inc.||-48.72%||-43.23%||-28.15%|
This is a summary of recent ratings for Square and Castlight Health, inc., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Castlight Health, inc.||1||5||2||0||2.13|
Square presently has a consensus target price of $19.06, suggesting a potential downside of 21.24%. Castlight Health, inc. has a consensus target price of $4.46, suggesting a potential upside of 10.23%. Given Castlight Health, inc.’s higher probable upside, analysts clearly believe Castlight Health, inc. is more favorable than Square.
Volatility and Risk
Square has a beta of 4.74, meaning that its share price is 374% more volatile than the S&P 500. Comparatively, Castlight Health, inc. has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.
Earnings & Valuation
This table compares Square and Castlight Health, inc.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Square||$1.79 billion||5.06||-$58.44 million||($0.25)||-96.80|
|Castlight Health, inc.||$106.73 million||4.95||-$50.35 million||($0.51)||-7.94|
Castlight Health, inc. has higher revenue, but lower earnings than Square. Square is trading at a lower price-to-earnings ratio than Castlight Health, inc., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
76.8% of Square shares are owned by institutional investors. Comparatively, 39.4% of Castlight Health, inc. shares are owned by institutional investors. 42.6% of Square shares are owned by company insiders. Comparatively, 24.4% of Castlight Health, inc. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Square beats Castlight Health, inc. on 11 of the 13 factors compared between the two stocks.
Square, Inc. (Square) is a commerce ecosystem. The Company enables its sellers start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. Once a seller downloads the Square Point of Sale mobile application, they can take their first payment. With its offering, a seller can accept payments in person via magnetic stripe (a swipe), Europay, MasterCard, and Visa (EMV) (a dip), or Near Field Communication (NFC) (a tap); or online via Square Invoices, Square Virtual Terminal, or the seller’s Website. Once on its system, sellers gain access to technology and features, such as reporting and analytics, next-day settlements, digital receipts, payment dispute management and chargeback protection, and Payment Card Industry (PCI) compliance. On the consumer (buyer) side, Square Cash offers individuals access to a way to send and receive money.
About Castlight Health, inc.
Castlight Health, Inc. offers a health benefits platform that engages employees to make healthcare decisions, and enables employers to communicate and measure their benefit programs. The Company operates through cloud-based products segment. Its technology offering aggregates data and applies analytics to make healthcare data transparent. Its products deliver employee engagement and enable employers to integrate benefit programs into a single platform available to employees and their families. Its health benefits platform engages external data and its substantial user base to provide a single, end-to-end solution that engages employees through personalized and relevant communications. Its offering provides employers the opportunity to communicate, measure, and get value out of their benefits and programs on a real-time basis. It offers cross-sell products, such as Castlight Action, Castlight Pharmacy, Castlight Dental, Castlight Elevate, Castlight Protect and Castlight Rewards.
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