Head-To-Head Survey: CSG Systems International (NASDAQ:CSGS) versus Cars.com (NYSE:CARS)


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CSG Systems International (NASDAQ:CSGS) and Cars.com (NYSE:CARS) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for CSG Systems International and Cars.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSG Systems International 0 1 0 0 2.00
Cars.com 0 2 6 0 2.75

CSG Systems International currently has a consensus target price of $49.00, suggesting a potential upside of 4.46%. Cars.com has a consensus target price of $12.00, suggesting a potential downside of 15.31%. Given CSG Systems International’s higher possible upside, equities analysts clearly believe CSG Systems International is more favorable than Cars.com.

Insider and Institutional Ownership

92.0% of CSG Systems International shares are held by institutional investors. Comparatively, 95.6% of Cars.com shares are held by institutional investors. 2.1% of CSG Systems International shares are held by insiders. Comparatively, 0.5% of Cars.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

CSG Systems International has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Cars.com has a beta of 2.41, indicating that its stock price is 141% more volatile than the S&P 500.

Earnings and Valuation

This table compares CSG Systems International and Cars.com’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CSG Systems International $996.81 million 1.55 $82.77 million $3.04 15.43
Cars.com $606.68 million 1.57 -$445.32 million $1.45 9.77

CSG Systems International has higher revenue and earnings than Cars.com. Cars.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.

Profitability

This table compares CSG Systems International and Cars.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSG Systems International 6.91% 21.52% 6.78%
Cars.com -151.54% 17.78% 7.01%

Summary

CSG Systems International beats Cars.com on 8 of the 14 factors compared between the two stocks.

About CSG Systems International

CSG Systems International, Inc. provides revenue management, 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 cloud-based platform; related customer communications management solutions, including field force automation, analytics, electronic bill presentment, ACH, etc. for processing voice, SMS/text, print, and e-mail messages; and cloud-based integrated suite of solutions for range of industries. The company also provides 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. It serves financial services, healthcare, media and entertainment companies, and government markets. The company was incorporated in 1994 and is headquartered in Greenwood Village, Colorado.

About Cars.com

Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.

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