Financial Contrast: Crossroads Systems (CRDSQ) versus Its Peers

Crossroads Systems (OTCMKTS: CRDSQ) is one of 21 public companies in the “Computer Peripherals” industry, but how does it contrast to its rivals? We will compare Crossroads Systems to related businesses based on the strength of its profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Risk and Volatility

Crossroads Systems has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500. Comparatively, Crossroads Systems’ rivals have a beta of 0.91, meaning that their average stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Crossroads Systems and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crossroads Systems -518.75% -22.99% -7.88%
Crossroads Systems Competitors -245.00% -17.15% -8.34%

Insider and Institutional Ownership

7.5% of Crossroads Systems shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Computer Peripherals” companies are owned by institutional investors. 27.4% of Crossroads Systems shares are owned by company insiders. Comparatively, 17.6% of shares of all “Computer Peripherals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Crossroads Systems and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crossroads Systems 0 0 0 0 N/A
Crossroads Systems Competitors 51 264 441 14 2.54

As a group, “Computer Peripherals” companies have a potential upside of 13.14%. Given Crossroads Systems’ rivals higher probable upside, analysts plainly believe Crossroads Systems has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Crossroads Systems and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Crossroads Systems N/A N/A -2.50
Crossroads Systems Competitors $1.07 billion $5.10 million -107.13

Crossroads Systems’ rivals have higher revenue and earnings than Crossroads Systems. Crossroads Systems is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Crossroads Systems rivals beat Crossroads Systems on 5 of the 8 factors compared.

About Crossroads Systems

Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.

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