Sohu.com (NASDAQ:SOHU) and CSG Systems International (NASDAQ:CSGS) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Risk and Volatility
Sohu.com has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Insider and Institutional Ownership
40.8% of Sohu.com shares are owned by institutional investors. Comparatively, 91.5% of CSG Systems International shares are owned by institutional investors. 21.1% of Sohu.com shares are owned by company insiders. Comparatively, 2.7% of CSG Systems International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Sohu.com and CSG Systems International's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sohu.com | $749.89 million | 0.92 | $-60,660,000.00 | ($1.40) | -12.59 |
| CSG Systems International | $990.53 million | 1.54 | $58.71 million | $2.64 | 17.58 |
CSG Systems International has higher revenue and earnings than Sohu.com. Sohu.com 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.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Sohu.com and CSG Systems International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sohu.com | 0 | 1 | 1 | 0 | 2.50 |
| CSG Systems International | 0 | 1 | 0 | 0 | 2.00 |
Sohu.com presently has a consensus price target of $26.6667, suggesting a potential upside of 52.21%. CSG Systems International has a consensus price target of $49.00, suggesting a potential upside of 5.81%. Given Sohu.com's stronger consensus rating and higher possible upside, analysts plainly believe Sohu.com is more favorable than CSG Systems International.
Profitability
This table compares Sohu.com and CSG Systems International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sohu.com | -1.59% | 6.93% | 2.60% |
| CSG Systems International | 5.69% | 19.84% | 6.39% |
Summary
CSG Systems International beats Sohu.com on 9 of the 14 factors compared between the two stocks.
