Analyzing Climb Global Solutions (CLMB) and Its Peers

Climb Global Solutions (NASDAQ:CLMB) is one of 260 publicly-traded companies in the “Technology Services” industry, but how does it weigh in compared to its competitors? We will compare Climb Global Solutions to similar businesses based on the strength of its risk, earnings, dividends, analyst recommendations, valuation, profitability and institutional ownership.

Volatility and Risk

Climb Global Solutions has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Climb Global Solutions’ competitors have a beta of -13.67, indicating that their average share price is 1,467% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Climb Global Solutions and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Climb Global Solutions	0	0	1	0	3.00
Climb Global Solutions Competitors	442	2051	4529	215	2.62

Climb Global Solutions presently has a consensus price target of $136.00, suggesting a potential upside of 36.42%. As a group, “Technology Services” companies have a potential upside of 24.98%. Given Climb Global Solutions’ stronger consensus rating and higher possible upside, equities analysts clearly believe Climb Global Solutions is more favorable than its competitors.

Valuation & Earnings

This table compares Climb Global Solutions and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Climb Global Solutions	$465.61 million	$18.61 million	23.35
Climb Global Solutions Competitors	$1.19 billion	$31.94 million	-11.50

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

Profitability

This table compares Climb Global Solutions and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Climb Global Solutions	3.83%	28.34%	6.62%
Climb Global Solutions Competitors	-370.26%	-109.60%	-21.85%

Dividends

Climb Global Solutions pays an annual dividend of $0.68 per share and has a dividend yield of 0.7%. Climb Global Solutions pays out 15.9% of its earnings in the form of a dividend. As a group, “Technology Services” companies pay a dividend yield of 0.8% and pay out 20.3% of their earnings in the form of a dividend.

Institutional & Insider Ownership

49.7% of Climb Global Solutions shares are held by institutional investors. Comparatively, 37.7% of shares of all “Technology Services” companies are held by institutional investors. 6.1% of Climb Global Solutions shares are held by company insiders. Comparatively, 21.3% of shares of all “Technology Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Climb Global Solutions beats its competitors on 10 of the 15 factors compared.

Climb Global Solutions Company Profile

Climb Global Solutions Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions; and provides cloud solutions and resells software, hardware, and services under the name Grey Matter. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers. In addition, the company offers a line of products from various software vendors; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. It markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials. The company was formerly known as Wayside Technology Group, Inc. and changed its name to Climb Global Solutions Inc. in October 2022. Climb Global Solutions Inc. was incorporated in 1982 and is headquartered in Eatontown, New Jersey.