Head-To-Head Review: CSG Systems International (NASDAQ:CSGS) & QXO (NASDAQ:QXO)
by Teresa Graham · The Cerbat GemCSG Systems International (NASDAQ:CSGS – Get Free Report) and QXO (NASDAQ:QXO – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Insider & Institutional Ownership
91.1% of CSG Systems International shares are owned by institutional investors. Comparatively, 58.7% of QXO shares are owned by institutional investors. 3.1% of CSG Systems International shares are owned by company insiders. Comparatively, 90.6% of QXO shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares CSG Systems International and QXO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CSG Systems International | 5.53% | 33.18% | 6.59% |
| QXO | -3.75% | 0.51% | 0.24% |
Risk and Volatility
CSG Systems International has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, QXO has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500.
Valuation and Earnings
This table compares CSG Systems International and QXO”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 | $1.17 billion | 1.22 | $66.25 million | $2.19 | 22.04 |
| QXO | $54.52 million | 104.99 | -$1.07 million | ($1.76) | -7.94 |
CSG Systems International has higher revenue and earnings than QXO. QXO 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.
Analyst Ratings
This is a breakdown of recent ratings and target prices for CSG Systems International and QXO, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CSG Systems International | 0 | 1 | 4 | 0 | 2.80 |
| QXO | 0 | 0 | 0 | 0 | N/A |
CSG Systems International currently has a consensus price target of $58.80, suggesting a potential upside of 21.84%. Given CSG Systems International’s higher probable upside, analysts clearly believe CSG Systems International is more favorable than QXO.
Summary
CSG Systems International beats QXO on 10 of the 13 factors compared between the two stocks.
About CSG Systems International
CSG Systems International, Inc., together with its subsidiaries, provides revenue management and digital monetization, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers Advanced Convergent Platform, a private SaaS platform; and related solutions, including service technician management, analytics, electronic bill presentment, etc. The company also provides a public SaaS-based revenue management and payments platform. In addition, it offers managed services; and professional services to implement, configure, and maintain its solutions, as well as licenses various solutions, such as mediation, partner management, rating, and charging. Further, the company provides operational services, including infrastructure management comprised of hardware, application, and environmental management; application configuration management, such as configuration development, release, and deployment; and business operations management, which includes event processing, revenue management, and settlement. It serves retail, financial services, healthcare, insurance, and government entities. The company was incorporated in 1994 and is headquartered in Englewood, Colorado.
About QXO
QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.