CSP (NASDAQ:CSPI – Get Free Report) and SmartRent (NYSE:SMRT – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Analyst Ratings
This is a breakdown of current ratings and price targets for CSP and SmartRent, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CSP | 0 | 0 | 0 | 0 | N/A |
| SmartRent | 0 | 1 | 4 | 0 | 2.80 |
SmartRent has a consensus target price of $5.54, indicating a potential upside of 44.37%. Given SmartRent’s higher possible upside, analysts clearly believe SmartRent is more favorable than CSP.
Volatility & Risk
Earnings & Valuation
This table compares CSP and SmartRent’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CSP | $54.36 million | 1.13 | $1.89 million | $0.74 | 17.68 |
| SmartRent | $167.82 million | 4.56 | -$96.32 million | ($0.44) | -8.73 |
CSP has higher earnings, but lower revenue than SmartRent. SmartRent is trading at a lower price-to-earnings ratio than CSP, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CSP and SmartRent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CSP | 5.17% | 8.20% | 4.64% |
| SmartRent | -44.05% | -21.61% | -14.62% |
Insider & Institutional Ownership
24.3% of CSP shares are owned by institutional investors. Comparatively, 52.9% of SmartRent shares are owned by institutional investors. 14.1% of CSP shares are owned by company insiders. Comparatively, 12.0% of SmartRent shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
CSP beats SmartRent on 7 of the 13 factors compared between the two stocks.
About CSP
CSP Inc. develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.
About SmartRent
SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.
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