Cass Information Systems (NASDAQ:CASS) vs. XBP Europe (NASDAQ:XBP) Financial Contrast

XBP Europe (NASDAQ:XBP) and Cass Information Systems (NASDAQ:CASS) are both small-cap business services 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for XBP Europe and Cass Information Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XBP Europe	0	0	0	0	0.00
Cass Information Systems	0	0	1	0	3.00

Cass Information Systems has a consensus target price of $45.00, indicating a potential upside of 0.29%. Given Cass Information Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Cass Information Systems is more favorable than XBP Europe.

Profitability

This table compares XBP Europe and Cass Information Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XBP Europe	-9.50%	N/A	-14.57%
Cass Information Systems	11.52%	9.92%	0.99%

Valuation and Earnings

This table compares XBP Europe and Cass Information Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XBP Europe	$166.57 million	0.21	-$11.05 million	N/A	N/A
Cass Information Systems	$197.51 million	3.08	$30.06 million	$1.66	27.03

Cass Information Systems has higher revenue and earnings than XBP Europe.

Risk and Volatility

XBP Europe has a beta of -0.32, meaning that its share price is 132% less volatile than the S&P 500. Comparatively, Cass Information Systems has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Insider and Institutional Ownership

15.7% of XBP Europe shares are held by institutional investors. Comparatively, 59.1% of Cass Information Systems shares are held by institutional investors. 82.5% of XBP Europe shares are held by insiders. Comparatively, 2.4% of Cass Information Systems 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

Cass Information Systems beats XBP Europe on 11 of the 12 factors compared between the two stocks.

About XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.

About Cass Information Systems

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company operates through two segments, Information Services and Banking Services. Its services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The company also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions, as well as church management software solution and on-line platform to provide generosity services for faith-based and non-profit organizations. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as demand, savings, time, and money market deposits; commercial, industrial, commercial real estate, and construction and land development loans; and cash management services to privately held businesses, restaurant franchises, and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and leased facilities in Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in Saint Louis, Missouri.