Reviewing WISeKey International (NASDAQ:WKEY) and CSG Systems International (NASDAQ:CSGS)

WISeKey International (NASDAQ:WKEY) and CSG Systems International (NASDAQ:CSGS) are both small-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

0.3% of WISeKey International shares are held by institutional investors. Comparatively, 91.1% of CSG Systems International shares are held by institutional investors. 33.5% of WISeKey International shares are held by company insiders. Comparatively, 3.1% of CSG Systems International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares WISeKey International and CSG Systems International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WISeKey International	N/A	N/A	N/A
CSG Systems International	5.53%	33.18%	6.59%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for WISeKey International and CSG Systems International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WISeKey International	0	0	2	0	3.00
CSG Systems International	0	1	4	0	2.80

WISeKey International presently has a consensus price target of $5.00, suggesting a potential upside of 133.64%. CSG Systems International has a consensus price target of $58.80, suggesting a potential upside of 25.29%. Given WISeKey International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe WISeKey International is more favorable than CSG Systems International.

Earnings & Valuation

This table compares WISeKey International and CSG Systems International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WISeKey International	$30.92 million	0.47	-$15.36 million	N/A	N/A
CSG Systems International	$1.17 billion	1.18	$66.25 million	$2.19	21.43

CSG Systems International has higher revenue and earnings than WISeKey International.

Risk and Volatility

WISeKey International has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Summary

CSG Systems International beats WISeKey International on 8 of the 12 factors compared between the two stocks.

About WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.

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.