Hitek Global (NASDAQ:HKIT) and Climb Global Solutions (NASDAQ:CLMB) Financial Analysis

Climb Global Solutions (NASDAQ:CLMB) and Hitek Global (NASDAQ:HKIT) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Insider & Institutional Ownership

49.7% of Climb Global Solutions shares are held by institutional investors. Comparatively, 1.2% of Hitek Global shares are held by institutional investors. 6.1% of Climb Global Solutions shares are held 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.

Risk and Volatility

Climb Global Solutions has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Hitek Global has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Climb Global Solutions and Hitek Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Climb Global Solutions	1	0	2	0	2.33
Hitek Global	1	0	0	0	1.00

Climb Global Solutions presently has a consensus price target of $136.00, suggesting a potential upside of 30.63%. Given Climb Global Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Climb Global Solutions is more favorable than Hitek Global.

Profitability

This table compares Climb Global Solutions and Hitek Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Climb Global Solutions	3.44%	26.52%	6.49%
Hitek Global	N/A	N/A	N/A

Earnings & Valuation

This table compares Climb Global Solutions and Hitek Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Climb Global Solutions	$465.61 million	1.03	$18.61 million	$4.65	22.39
Hitek Global	$2.90 million	10.87	-$900,000.00	N/A	N/A

Climb Global Solutions has higher revenue and earnings than Hitek Global.

Summary

Climb Global Solutions beats Hitek Global on 10 of the 12 factors compared between the two stocks.

About Climb Global Solutions

Climb Global Solutions Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions; and provides cloud solutions and resells software, hardware, and services under the name Grey Matter. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers. In addition, the company offers a line of products from various software vendors; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. It markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials. The company was formerly known as Wayside Technology Group, Inc. and changed its name to Climb Global Solutions Inc. in October 2022. Climb Global Solutions Inc. was incorporated in 1982 and is headquartered in Eatontown, New Jersey.

About Hitek Global

Hitek Global Inc. provides information technology (IT) consulting and solutions to small and medium businesses in various industry sectors in China. It offers anti-counterfeiting tax control system (ACTCS) tax devices, including golden tax disk and printers, ACTCS services, and IT services; and sells software and hardware to large businesses, such as laptops, printers, desktop computers, and related accessories, as well as Internet servers, cameras, and monitors. The company was founded in 1996 and is headquartered in Xiamen, China.