CSG Systems International (NASDAQ:CSGS – Get Free Report) and Applied Digital (NASDAQ:APLD – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Risk and Volatility
CSG Systems International has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Applied Digital has a beta of 4.56, meaning that its share price is 356% more volatile than the S&P 500.
Valuation & Earnings
This table compares CSG Systems International and Applied Digital”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CSG Systems International | $1.17 billion | 1.18 | $66.25 million | $2.22 | 20.99 |
| Applied Digital | $165.57 million | 8.40 | -$149.27 million | ($1.17) | -5.52 |
Analyst Recommendations
This is a breakdown of current ratings and target prices for CSG Systems International and Applied Digital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CSG Systems International | 0 | 1 | 4 | 0 | 2.80 |
| Applied Digital | 0 | 0 | 6 | 0 | 3.00 |
CSG Systems International currently has a consensus target price of $58.80, indicating a potential upside of 26.21%. Applied Digital has a consensus target price of $10.50, indicating a potential upside of 62.54%. Given Applied Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Applied Digital is more favorable than CSG Systems International.
Profitability
This table compares CSG Systems International and Applied Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CSG Systems International | 5.53% | 33.18% | 6.59% |
| Applied Digital | -74.95% | -88.87% | -20.16% |
Insider and Institutional Ownership
91.1% of CSG Systems International shares are held by institutional investors. Comparatively, 65.7% of Applied Digital shares are held by institutional investors. 3.1% of CSG Systems International shares are held by insiders. Comparatively, 11.8% of Applied Digital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
CSG Systems International beats Applied Digital on 8 of the 14 factors compared between the two stocks.
About CSG Systems International
CSG Systems International, Inc., together with its subsidiaries, provides revenue management and digital monetization, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers Advanced Convergent Platform, a private SaaS platform; and related solutions, including service technician management, analytics, electronic bill presentment, etc. The company also provides a public SaaS-based revenue management and payments platform. In addition, it offers managed services; and professional services to implement, configure, and maintain its solutions, as well as licenses various solutions, such as mediation, partner management, rating, and charging. Further, the company provides operational services, including infrastructure management comprised of hardware, application, and environmental management; application configuration management, such as configuration development, release, and deployment; and business operations management, which includes event processing, revenue management, and settlement. It serves retail, financial services, healthcare, insurance, and government entities. The company was incorporated in 1994 and is headquartered in Englewood, Colorado.
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
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