CSP (NASDAQ:CSPI – Get Free Report) and Syntec Optics (NASDAQ:OPTX – Get Free Report) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Risk and Volatility
CSP has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Syntec Optics has a beta of -0.76, suggesting that its share price is 176% less volatile than the S&P 500.
Profitability
This table compares CSP and Syntec Optics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CSP | -1.22% | -1.56% | -0.99% |
| Syntec Optics | -8.26% | -16.50% | -8.68% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CSP | $58.73 million | 1.34 | -$90,000.00 | ($0.07) | -111.71 |
| Syntec Optics | $28.08 million | 14.09 | -$1.79 million | ($0.06) | -163.67 |
CSP has higher revenue and earnings than Syntec Optics. Syntec Optics is trading at a lower price-to-earnings ratio than CSP, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for CSP and Syntec Optics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CSP | 1 | 0 | 0 | 0 | 1.00 |
| Syntec Optics | 1 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
26.7% of CSP shares are held by institutional investors. 15.0% of CSP shares are held by company insiders. Comparatively, 0.8% of Syntec Optics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
CSP beats Syntec Optics on 9 of the 11 factors compared between the two stocks.
About CSP
CSP Inc. develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The 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 planning, designing, assessment, implementation, migration, optimization, and project management; storage and 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; optimization, 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, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; ARIA Zero Trust PROTECT that stopping the attacks that are used to attack critical infrastructure applications; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.
About Syntec Optics
Syntec Optics Holdings, Inc. manufactures and supplies integrated optics for biomedical, defense and military, consumer, and other applications. It offers camera modules; tool design, design for manufacturing, optical and opto-mechanical design, and moldflow analysis; SPDT optics, such as freedom optics, microlens arrays, spheres and aspheres, diffractives, SPDT materials, and optical tooling; replicative molding, that includes polymer and glass molding, and molded production materials; thin film coating and coating curve materials; and precision machining and precision machining materials. The company also provides clean room assembly, such as opto mechanical, opto electronic, and integrated photonics; infrared optics, microlens arrays, software development, and optical metrology, and catalog optics services. In addition, it offers driverless cars, integrated photonics, robotics, sensors, VR and AR, machine vision, facial imagining, heads up display, finger print scanners, and laser scanners technology for consumers; night vision goggles, missile laser guides, biometrics, infrared and thermal imaging, ordnance optics, head mounted displays, 2D and 3D scanners, humvee lighting , laser targeting, protective domes and windows, and lidar technologies for defense and miliary; and medical diagnostic, microfluidics, surgical components and systems, and medical sensing technology for medical sectors. The company was founded in 1981 and is based in Rochester, New York.
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