CSG Systems International (CSGS) & Castlight Health (CSLT) Head to Head Contrast

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

Analyst Recommendations

This is a summary of current recommendations and price targets for CSG Systems International and Castlight Health, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSG Systems International 0 0 2 0 3.00
Castlight Health 0 1 4 0 2.80

CSG Systems International presently has a consensus target price of $51.00, suggesting a potential upside of 36.84%. Castlight Health has a consensus target price of $5.70, suggesting a potential upside of 90.00%. Given Castlight Health’s higher probable upside, analysts clearly believe Castlight Health is more favorable than CSG Systems International.

Dividends

CSG Systems International pays an annual dividend of $0.84 per share and has a dividend yield of 2.3%. Castlight Health does not pay a dividend. CSG Systems International pays out 41.6% of its earnings in the form of a dividend. CSG Systems International has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

96.6% of CSG Systems International shares are owned by institutional investors. Comparatively, 49.9% of Castlight Health shares are owned by institutional investors. 2.2% of CSG Systems International shares are owned by insiders. Comparatively, 22.6% of Castlight Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
CSG Systems International 7.16% 21.86% 8.27%
Castlight Health -38.02% -22.89% -16.51%

Valuation and Earnings

This table compares CSG Systems International and Castlight Health’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CSG Systems International $789.58 million 1.58 $61.36 million $2.02 18.45
Castlight Health $131.43 million 3.14 -$55.57 million ($0.26) -11.54

CSG Systems International has higher revenue and earnings than Castlight Health. Castlight Health 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.

Volatility and Risk

CSG Systems International has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Castlight Health has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Summary

CSG Systems International beats Castlight Health on 11 of the 17 factors compared between the two stocks.

CSG Systems International Company Profile

CSG Systems International, Inc. provides business support solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company's services include Advanced Convergent Platform, a billing and customer care platform for cable and satellite providers; Ascendon, a software-as-a-service cloud-based platform that provides a trusted path to digital transformation; and Singleview solution to deliver real-time charging services. Its solutions also comprise customer communications management solutions, which process interactive voice, SMS/text, print, e-mail, Web, and fax messages on behalf of clients; managed services; Total Service Mediation (TSM) framework that supports offline and real-time mediation requirements; and Wholesale Business Management Solution (WBMS), a settlements system, which handles voice, data, and content services. The company also offers professional services to implement, configure, and maintain software products, as well as licenses software products, such as WBMS, TSM, and Singleview products. CSG Systems International, Inc. was founded in 1994 and is headquartered in Greenwood Village, Colorado.

Castlight Health Company Profile

Castlight Health, Inc. provides a software-as-a-service platform used for health benefits navigation for employees in the United States. Its platform matches employees to the resources their employers make available to them; managing a condition; and assists them to manage their benefits. The company also offers communication and testing, implementation, and user customer support services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government. The company was formerly known as Ventana Health Services and changed its name to Castlight Health, Inc. in April 2010. Castlight Health, Inc. was founded in 2008 and is headquartered in San Francisco, California.

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