Computer Modelling Group (TSE:CMG) and Absolute Software Co. (ABT.TO) (TSE:ABT) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Profitability
This table compares Computer Modelling Group and Absolute Software Co. (ABT.TO)'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Computer Modelling Group | N/A | N/A | N/A |
| Absolute Software Co. (ABT.TO) | N/A | N/A | N/A |
Valuation and Earnings
This table compares Computer Modelling Group and Absolute Software Co. (ABT.TO)'s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Computer Modelling Group | C$69.08 million | 6.14 | C$22.96 million | C$0.29 | 18.46 |
| Absolute Software Co. (ABT.TO) | C$104.67 million | 0.00 | C$10.04 million | C$0.24 | N/A |
Computer Modelling Group has higher earnings, but lower revenue than Absolute Software Co. (ABT.TO). Absolute Software Co. (ABT.TO) is trading at a lower price-to-earnings ratio than Computer Modelling Group, indicating that it is currently the more affordable of the two stocks.
Dividends
Computer Modelling Group pays an annual dividend of C$0.25 per share and has a dividend yield of 4.7%. Absolute Software Co. (ABT.TO) pays an annual dividend of C$0.24 per share. Computer Modelling Group pays out 87.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Absolute Software Co. (ABT.TO) pays out 99.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Computer Modelling Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent ratings for Computer Modelling Group and Absolute Software Co. (ABT.TO), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Computer Modelling Group | 0 | 2 | 0 | 0 | 2.00 |
| Absolute Software Co. (ABT.TO) | 0 | 1 | 1 | 0 | 2.50 |
Computer Modelling Group presently has a consensus price target of C$6.50, suggesting a potential upside of 23.81%. Absolute Software Co. (ABT.TO) has a consensus price target of C$18.50, suggesting a potential upside of ∞. Given Absolute Software Co. (ABT.TO)'s stronger consensus rating and higher probable upside, analysts clearly believe Absolute Software Co. (ABT.TO) is more favorable than Computer Modelling Group.
Summary
Absolute Software Co. (ABT.TO) beats Computer Modelling Group on 5 of the 9 factors compared between the two stocks.
