Financial Analysis: CalAmp (CAMP) and Casa Systems (CASA)

Casa Systems (NASDAQ:CASA) and CalAmp (NASDAQ:CAMP) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Casa Systems and CalAmp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casa Systems 0 2 6 0 2.75
CalAmp 0 3 4 0 2.57

Casa Systems currently has a consensus target price of $22.00, suggesting a potential upside of 60.70%. CalAmp has a consensus target price of $28.33, suggesting a potential upside of 45.75%. Given Casa Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Casa Systems is more favorable than CalAmp.

Valuation & Earnings

This table compares Casa Systems and CalAmp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Casa Systems $351.58 million 3.36 $88.50 million $0.79 17.33
CalAmp $365.91 million 1.85 $16.61 million $0.92 21.13

Casa Systems has higher earnings, but lower revenue than CalAmp. Casa Systems is trading at a lower price-to-earnings ratio than CalAmp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

60.7% of Casa Systems shares are owned by institutional investors. Comparatively, 77.2% of CalAmp shares are owned by institutional investors. 65.2% of Casa Systems shares are owned by company insiders. Comparatively, 5.4% of CalAmp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Casa Systems and CalAmp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Casa Systems N/A 221.41% 14.55%
CalAmp 3.88% 16.87% 6.67%

Summary

Casa Systems beats CalAmp on 8 of the 13 factors compared between the two stocks.

Casa Systems Company Profile

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers software-centric infrastructure solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks. Casa Systems, Inc. was founded in 2003 and is headquartered in Andover, Massachusetts.

CalAmp Company Profile

CalAmp Corp. provides in telematics systems, and software and subscription services worldwide. The company provides mobile resource management telematics devices for the Internet of Things market, which enable customers to optimize their operations by collecting, monitoring, and reporting business-critical information and desired intelligence from remote and mobile assets. It also offers a portfolio of wireless networking products, including asset tracking units, mobile telematics devices, and fixed and mobile wireless gateways and routers; telematics cloud platform applications; and software as a service applications. The company sells its products and services to customers in the transportation, government, construction, and automotive markets through direct sales organization, a network of licensees, and sales representatives, as well as through Websites and digital presence. CalAmp Corp. was founded in 1981 and is headquartered in Irvine, California.

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