Computer Task Group (NASDAQ: VRTU) and Virtusa (NASDAQ:VRTU) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
This is a summary of current recommendations and price targets for Computer Task Group and Virtusa, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Computer Task Group||0||0||2||0||3.00|
Computer Task Group currently has a consensus target price of $9.00, suggesting a potential upside of 50.75%. Virtusa has a consensus target price of $61.29, suggesting a potential upside of 12.27%. Given Computer Task Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Computer Task Group is more favorable than Virtusa.
Valuation and Earnings
This table compares Computer Task Group and Virtusa’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Computer Task Group||$301.21 million||0.29||$800,000.00||$0.22||27.14|
|Virtusa||$1.02 billion||1.59||$1.25 million||$0.89||61.34|
Virtusa has higher revenue and earnings than Computer Task Group. Computer Task Group is trading at a lower price-to-earnings ratio than Virtusa, indicating that it is currently the more affordable of the two stocks.
This table compares Computer Task Group and Virtusa’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Computer Task Group||0.30%||4.78%||2.76%|
Volatility and Risk
Computer Task Group has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Virtusa has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Institutional and Insider Ownership
59.1% of Computer Task Group shares are owned by institutional investors. Comparatively, 86.4% of Virtusa shares are owned by institutional investors. 12.3% of Computer Task Group shares are owned by insiders. Comparatively, 5.1% of Virtusa shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Virtusa beats Computer Task Group on 11 of the 15 factors compared between the two stocks.
Computer Task Group Company Profile
Computer Task Group, Incorporated, together with its subsidiaries, operates as an information technology solutions and staffing services company in North America, Europe, and India. Its IT solutions include the implementation and optimization of packaged software applications; development and deployment of customized software and solutions designed to fit the needs of a specific client or market; and design and distribution of complex technology components, as well as offers consulting services. The company's IT and other staffing services include recruiting, retaining, and managing IT and other talent primarily for technology service providers and other companies with multiple locations. It serves technology service and healthcare providers, and health insurers, as well as manufacturing, life sciences, energy, and financial services companies. Computer Task Group, Incorporated was founded in 1966 and is headquartered in Buffalo, New York.
Virtusa Company Profile
Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services worldwide. The company offers business and IT consulting services, including advisory/target operating model, business process re-engineering/business management, transformational solution consulting, and business/technology alignment analysis; omni-channel digital strategy, experience design accelerated solution design, and employee engagement; and application portfolio rationalization, SDLC transformation, and BA competency transformation services. It also provides technology implementation services, such as application development, software product engineering, CRM and SAP implementation, content management, enterprise mobility, cloud computing, and social media solutions; systems consolidation and rationalization, technology migration and porting, and legacy application Web-enablement; data management, business intelligence, reporting and decision support, master data management, data integration, and big data analytics; and software quality assurance and managed testing services. In addition, the company offers application outsourcing services comprising application maintenance and support, applications enhancement, and cloud-environment management and support; managed infrastructure, and remote application monitoring and support services; and IT efficiency improvement services. Further, it offers digital engineering and operational excellence services-based, and transformational solutions. The company provides its services to communications and technology; banking, financial services, and insurance; and media and information industries. The company was formerly known as eRunway, Inc. and changed its name to Virtusa Corporation in April 2002. Virtusa Corporation was founded in 1996 and is headquartered in Southborough, Massachusetts.
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