Net Element (NASDAQ: NETE) and CSG Systems International (NASDAQ:CSGS) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
CSG Systems International pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. Net Element does not pay a dividend. CSG Systems International pays out 41.6% of its earnings in the form of a dividend.
4.0% of Net Element shares are held by institutional investors. Comparatively, 90.8% of CSG Systems International shares are held by institutional investors. 27.9% of Net Element shares are held by company insiders. Comparatively, 2.2% of CSG Systems International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Net Element and CSG Systems International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CSG Systems International||6.90%||21.46%||8.05%|
This is a summary of current ratings for Net Element and CSG Systems International, as reported 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 has a consensus target price of $52.00, suggesting a potential upside of 22.61%. Given CSG Systems International’s higher probable upside, analysts clearly believe CSG Systems International is more favorable than Net Element.
Earnings & Valuation
This table compares Net Element and CSG Systems International’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Net Element||$60.06 million||0.48||-$9.91 million||($5.04)||-1.49|
|CSG Systems International||$789.58 million||1.81||$61.36 million||$2.02||21.00|
CSG Systems International has higher revenue and earnings than Net Element. Net Element is trading at a lower price-to-earnings ratio than CSG Systems International, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Net Element has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
CSG Systems International beats Net Element on 12 of the 14 factors compared between the two stocks.
About Net Element
Net Element, Inc. operates as a financial technology and value-added solutions company. It operates in two segments, North American Transaction Solutions, and International Transaction Solutions. The company offers a range of payment acceptance and processing services that enable merchants of various sizes to accept and process approximately 100 payment options, including credit, debit, prepaid, and alternative payments; and value-added services and technologies, such as integrated payment technologies, point-of-sale solutions (POS), security solutions, fraud management, information solutions, and analytical tools. Its services include Unified Payments, a payment acceptance solution; Unified m-POS, an easy-to-use mobile application for small and medium sized businesses (SMB); Aptito, a cloud-based POS platform for the hospitality industry and SMB merchants; Restoactive, a visual POS integration solution for restaurants; Zero Pay, a payment acceptance program for SMB merchants; PayOnline, an integrated e-commerce and mobile payments processing platform, and fraud management system; Pay?Travel, a payment processing solutions to the travel industry; Sales Central, a cloud-based solution to enhance responsiveness of indirect non-bank sales forces and sales efficiency; Netevia, which delivers end-to-end payment processing through easy-to-use APIs; and Digital Provider, an integrated direct-carrier and mobile operator solution for smaller content providers and merchants throughout selected international markets. It operates in North America, Russia, Europe, Asia, and the Commonwealth of Independent States. The company was formerly known as Net Element International, Inc. and changed its name to Net Element, Inc. in December 2013. Net Element, Inc. was founded in 2004 and is based in North Miami Beach, Florida.
About CSG Systems International
CSG Systems International, Inc. provides business support solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company's services include Advanced Convergent Platform, a billing and customer care platform for cable and satellite providers; Ascendon, a software-as-a-service cloud-based platform that provides a trusted path to digital transformation; and Singleview solution to deliver real-time charging services. Its solutions also comprise customer communications management solutions, which process interactive voice, SMS/text, print, e-mail, Web, and fax messages on behalf of clients; managed services; Total Service Mediation (TSM) framework that supports offline and real-time mediation requirements; and Wholesale Business Management Solution (WBMS), a settlements system, which handles voice, data, and content services. The company also offers professional services to implement, configure, and maintain software products, as well as licenses software products, such as WBMS, TSM, and Singleview products. CSG Systems International, Inc. was founded in 1994 and is headquartered in Greenwood Village, Colorado.
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