Head-To-Head Survey: Ability (ABIL) & CSG Systems International (CSGS)

Ability (NASDAQ: ABIL) and CSG Systems International (NASDAQ:CSGS) are both small-cap it services & consulting – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ability and CSG Systems International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ability 0 1 0 0 2.00
CSG Systems International 0 0 1 0 3.00

Ability presently has a consensus target price of $1.30, indicating a potential upside of 113.11%. CSG Systems International has a consensus target price of $47.00, indicating a potential upside of 9.43%. Given Ability’s higher possible upside, research analysts plainly believe Ability is more favorable than CSG Systems International.

Risk and Volatility

Ability has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ability $16.51 million 0.95 -$8.05 million ($0.44) -1.39
CSG Systems International $760.96 million 1.89 $62.88 million $1.80 23.86

CSG Systems International has higher revenue and earnings than Ability. Ability 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 Ability and CSG Systems International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ability -109.93% -100.03% -27.91%
CSG Systems International 7.57% 22.11% 7.58%

Dividends

CSG Systems International pays an annual dividend of $0.79 per share and has a dividend yield of 1.8%. Ability does not pay a dividend. CSG Systems International pays out 43.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

4.7% of Ability shares are owned by institutional investors. Comparatively, 91.0% of CSG Systems International shares are owned by institutional investors. 2.6% of CSG Systems International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

CSG Systems International beats Ability on 13 of the 15 factors compared between the two stocks.

Ability Company Profile

Ability Inc. is a holding company. The Company operates through its subsidiaries, Ability Computer & Software Industries Ltd. and Ability Security Systems Ltd., which provide interception, geolocation and cyber intelligence tools for security and intelligence agencies, military forces, law enforcement agencies and homeland security agencies around the world. The Company is engaged in off-air interception of voice, short message service (SMS), and data communication from both cellular and satellite communication networks, and deciphering solutions for both cellular and satellite communications. The Company’s product categories include Cellular Interception, Cellular Counter Interception, Satellite Interception, Geolocation, Cyber and Crime Prevention. Its Cellular Interception systems include Ultimate Interceptor (ULIN), IBIS, TouchDown, ACIS, AGIS-51 and 3G-Cat. Its Satellite Interception systems include IRIS, ATIS and SLIS.

CSG Systems International Company Profile

CSG Systems International, Inc. (CSG) is a provider of business support solutions primarily serving the communications industry. The Company provides business support solutions (BSS) to the communications service providers (CSPs), as well as clients in various industries. CSG’s solutions coordinate and manage various aspects of a service provider’s customer interactions, from the initial activation of customer accounts, to the support and fulfillment of various services, and through the calculation, presentment, and accounts receivables management of monthly customer statements. The Company’s primary product solutions include Revenue Management & Customer Experience Solutions; Customer Interaction Management; Managed Services; Mediation and Data Management, and Wholesale Settlement and Routing. The Company employs professional services across various sectors, including solution architecture, project management, systems implementation and business consultancy.

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