CSP (NASDAQ:CSPI) and Allscripts Healthcare Solutions (NASDAQ:MDRX) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Dividends

CSP pays an annual dividend of $0.60 per share and has a dividend yield of 6.0%. Allscripts Healthcare Solutions does not pay a dividend. CSP has increased its dividend for 6 consecutive years.

Profitability

This table compares CSP and Allscripts Healthcare Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSP 16.50% -6.93% -2.72%
Allscripts Healthcare Solutions -0.25% 8.25% 2.14%

Institutional & Insider Ownership

25.9% of CSP shares are owned by institutional investors. 10.2% of CSP shares are owned by insiders. Comparatively, 1.1% of Allscripts Healthcare Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares CSP and Allscripts Healthcare Solutions’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CSP $72.92 million 0.55 $14.44 million N/A N/A
Allscripts Healthcare Solutions $1.81 billion 1.10 -$152.60 million $0.47 24.28

CSP has higher earnings, but lower revenue than Allscripts Healthcare Solutions.

Analyst Ratings

This is a summary of current recommendations and price targets for CSP and Allscripts Healthcare Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSP 0 0 0 0 N/A
Allscripts Healthcare Solutions 0 4 8 0 2.67

Allscripts Healthcare Solutions has a consensus price target of $15.51, indicating a potential upside of 35.95%. Given Allscripts Healthcare Solutions’ higher probable upside, analysts plainly believe Allscripts Healthcare Solutions is more favorable than CSP.

Risk and Volatility

CSP has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Allscripts Healthcare Solutions has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Summary

CSP beats Allscripts Healthcare Solutions on 7 of the 13 factors compared between the two stocks.

About CSP

CSP Inc. develops and markets IT integration solutions, security and managed services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. The company's High Performance Products segment offers computing systems for digital signal processing applications in the defense market; Ethernet adapters and solutions for various applications in the packet capture, financial transaction, and storage interconnect markets; ARC Series adapters for automated trading and network monitoring; and nVoy Series products comprising 100G Packet Broker and 10G Packet Recorder, and specialized software under the Myricom brand. Its 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 implementation, integration, migration, configuration, installation, and project management; unified storage platforms; 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; 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, collaboration and resale, security, and backup and replication. CSP Inc. was founded in 1968 and is headquartered in Lowell, Massachusetts.

About Allscripts Healthcare Solutions

Allscripts Healthcare Solutions, Inc. provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. It offers electronic health records, connectivity, private cloud hosting, outsourcing, analytics, patient engagement, clinical decision support, and population health management solutions. The company's Clinical and Financial Solutions segment provides integrated clinical software applications and financial and information solutions, which primarily include EHR-related, and financial and practice management software solutions, as well as related installation, support and maintenance, outsourcing, private cloud hosting, revenue cycle management, training, and electronic claims administration services. Its Population Health segment offers health management and coordinated care solutions that enable hospitals, health systems, accountable care organizations, and other care facilities to connect, transition, analyze, and coordinate care across the entire care community. The company's Netsmart segment operates in and provides software and technology solutions to the health and human services, and post-acute sectors of health care. The company serves physicians, hospitals, governments, health systems, health plans, life-sciences companies, retail clinics, retail pharmacies, pharmacy benefit managers, insurance companies, and employer wellness clinics, as well as post-acute organizations, such as home health and hospice agencies. Allscripts Healthcare Solutions, Inc. was founded in 1986 and is headquartered in Chicago, Illinois.

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