Analyzing CSG Systems International (CSGS) and Its Rivals

CSG Systems International (NASDAQ: CSGS) is one of 187 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare CSG Systems International to similar companies based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

91.3% of CSG Systems International shares are owned by institutional investors. Comparatively, 62.3% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 2.6% of CSG Systems International shares are owned by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” 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.

Risk & Volatility

CSG Systems International has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, CSG Systems International’s peers have a beta of 1.16, indicating that their average share price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for CSG Systems International and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSG Systems International 0 0 1 0 3.00
CSG Systems International Competitors 731 4677 7444 169 2.54

CSG Systems International presently has a consensus target price of $47.00, suggesting a potential upside of 4.17%. As a group, “IT Services & Consulting” companies have a potential upside of 2.95%. Given CSG Systems International’s stronger consensus rating and higher possible upside, research analysts clearly believe CSG Systems International is more favorable than its peers.

Earnings & Valuation

This table compares CSG Systems International and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CSG Systems International $760.96 million $62.88 million 25.21
CSG Systems International Competitors $2.81 billion $293.37 million 338.01

CSG Systems International’s peers have higher revenue and earnings than CSG Systems International. CSG Systems International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

CSG Systems International pays an annual dividend of $0.79 per share and has a dividend yield of 1.8%. CSG Systems International pays out 44.1% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.6% and pay out 37.7% of their earnings in the form of a dividend.

Profitability

This table compares CSG Systems International and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSG Systems International 7.57% 22.11% 7.58%
CSG Systems International Competitors -20.17% -269.41% -4.59%

Summary

CSG Systems International beats its peers on 8 of the 15 factors compared.

About CSG Systems International

CSG Systems International, Inc. (CSG) is a provider of business support solutions primarily serving the communications industry. The Company provides business support solutions (BSS) to the communications service providers (CSPs), as well as clients in various industries. CSG’s solutions coordinate and manage various aspects of a service provider’s customer interactions, from the initial activation of customer accounts, to the support and fulfillment of various services, and through the calculation, presentment, and accounts receivables management of monthly customer statements. The Company’s primary product solutions include Revenue Management & Customer Experience Solutions; Customer Interaction Management; Managed Services; Mediation and Data Management, and Wholesale Settlement and Routing. The Company employs professional services across various sectors, including solution architecture, project management, systems implementation and business consultancy.

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