CSP (NASDAQ:CSPI) and SofTech (OTCMKTS:SOFT) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
CSP pays an annual dividend of $0.60 per share and has a dividend yield of 5.2%. SofTech does not pay a dividend. CSP has increased its dividend for 5 consecutive years.
Earnings & Valuation
This table compares CSP and SofTech’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CSP||$111.48 million||0.42||$2.50 million||N/A||N/A|
CSP has higher revenue and earnings than SofTech.
This is a breakdown of recent ratings and price targets for CSP and SofTech, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Volatility & Risk
CSP has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, SofTech has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Institutional & Insider Ownership
26.4% of CSP shares are owned by institutional investors. 10.2% of CSP shares are owned by insiders. Comparatively, 28.6% of SofTech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares CSP and SofTech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CSP beats SofTech on 9 of the 11 factors compared between the two stocks.
CSP Inc. develops and markets IT integration solutions, security and managed services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. The company's High Performance Products segment offers computing systems for digital signal processing applications in the defense market; Ethernet adapters and solutions for various applications in the packet capture, financial transaction, and storage interconnect markets; ARC Series adapters for automated trading and network monitoring; and nVoy Series products comprising 100G Packet Broker and 10G Packet Recorder, and specialized software under the Myricom brand. Its Technology Solutions segment provides third-party computer hardware and software as a value added reseller to various customers in Web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as implementation, integration, migration, configuration, installation, and project management; unified storage platforms; virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; maintenance and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT Infrastructure, collaboration and resale, security, and backup and replication. CSP Inc. was founded in 1968 and is headquartered in Lowell, Massachusetts.
SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation's Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.
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