Critical Review: CSG Systems International (NASDAQ:CSGS) and Adit EdTech Acquisition (NYSE:ADEX)

CSG Systems International (NASDAQ:CSGS) and Adit EdTech Acquisition (NYSE:ADEX) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

91.1% of CSG Systems International shares are owned by institutional investors. Comparatively, 0.8% of Adit EdTech Acquisition shares are owned by institutional investors. 2.5% of CSG Systems International shares are owned by insiders. Comparatively, 0.3% of Adit EdTech Acquisition shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CSG Systems International	5.67%	27.67%	6.63%
Adit EdTech Acquisition	N/A	N/A	-6.44%

Earnings and Valuation

This table compares CSG Systems International and Adit EdTech Acquisition’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSG Systems International	$1.17 billion	1.30	$66.25 million	$2.19	23.53
Adit EdTech Acquisition	N/A	N/A	$4.83 million	N/A	N/A

CSG Systems International has higher revenue and earnings than Adit EdTech Acquisition.

Volatility and Risk

CSG Systems International has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Adit EdTech Acquisition has a beta of -0.35, indicating that its share price is 135% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for CSG Systems International and Adit EdTech Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSG Systems International	0	1	5	0	2.83
Adit EdTech Acquisition	0	0	0	0	N/A

CSG Systems International currently has a consensus price target of $63.00, suggesting a potential upside of 22.24%. Given CSG Systems International’s higher possible upside, equities research analysts clearly believe CSG Systems International is more favorable than Adit EdTech Acquisition.

Summary

CSG Systems International beats Adit EdTech Acquisition on 10 of the 10 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 Adit EdTech Acquisition

Adit EdTech Acquisition Corp. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses or entities. Adit EdTech Acquisition Corp. was incorporated in 2020 and is based in New York, New York. Adit EdTech Acquisition Corp. operates as a subsidiary of Adit Edtech Sponsor, LLC.