Capstone Turbine (NASDAQ:CPST) and Net 1 UEPS Technologies (NASDAQ:UEPS) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Institutional and Insider Ownership
11.3% of Capstone Turbine shares are owned by institutional investors. Comparatively, 21.8% of Net 1 UEPS Technologies shares are owned by institutional investors. 2.0% of Capstone Turbine shares are owned by insiders. Comparatively, 3.3% of Net 1 UEPS Technologies 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.
Profitability
This table compares Capstone Turbine and Net 1 UEPS Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Capstone Turbine | -30.83% | -149.82% | -25.19% |
Net 1 UEPS Technologies | -59.26% | -40.77% | -22.58% |
Volatility and Risk
Capstone Turbine has a beta of 2.79, suggesting that its stock price is 179% more volatile than the S&P 500. Comparatively, Net 1 UEPS Technologies has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Capstone Turbine and Net 1 UEPS Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Capstone Turbine | 0 | 1 | 3 | 0 | 2.75 |
Net 1 UEPS Technologies | 0 | 0 | 1 | 0 | 3.00 |
Capstone Turbine presently has a consensus price target of $9.8750, indicating a potential upside of 22.82%. Net 1 UEPS Technologies has a consensus price target of $7.00, indicating a potential upside of 22.81%. Given Capstone Turbine's higher probable upside, equities research analysts clearly believe Capstone Turbine is more favorable than Net 1 UEPS Technologies.
Earnings and Valuation
This table compares Capstone Turbine and Net 1 UEPS Technologies' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Capstone Turbine | $68.93 million | 1.50 | $-21,900,000.00 | ($2.70) | -2.98 |
Net 1 UEPS Technologies | $151 million | 2.14 | $-78,360,000.00 | ($1.70) | -3.35 |
Capstone Turbine has higher earnings, but lower revenue than Net 1 UEPS Technologies. Net 1 UEPS Technologies is trading at a lower price-to-earnings ratio than Capstone Turbine, indicating that it is currently the more affordable of the two stocks.
Summary
Net 1 UEPS Technologies beats Capstone Turbine on 9 of the 14 factors compared between the two stocks.