Applied Digital (NASDAQ:APLD – Get Free Report) and CSG Systems International (NASDAQ:CSGS – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Risk & Volatility
Applied Digital has a beta of 4.56, meaning that its share price is 356% more volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Applied Digital and CSG Systems International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Digital | 0 | 0 | 6 | 0 | 3.00 |
| CSG Systems International | 0 | 1 | 4 | 0 | 2.80 |
Profitability
This table compares Applied Digital and CSG Systems International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Digital | -74.95% | -88.87% | -20.16% |
| CSG Systems International | 5.53% | 33.18% | 6.59% |
Earnings and Valuation
This table compares Applied Digital 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 | |
| Applied Digital | $189.96 million | 8.34 | -$149.27 million | ($0.79) | -9.32 |
| CSG Systems International | $1.17 billion | 1.20 | $66.25 million | $2.19 | 21.59 |
CSG Systems International has higher revenue and earnings than Applied Digital. Applied Digital 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.
Institutional and Insider Ownership
65.7% of Applied Digital shares are held by institutional investors. Comparatively, 91.1% of CSG Systems International shares are held by institutional investors. 20.5% of Applied Digital shares are held by company insiders. Comparatively, 3.1% of CSG Systems International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock 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 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.
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.
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