Financial Analysis: Glu Mobile (GLUU) and Computer Programs & Systems (CPSI)

Computer Programs & Systems (NASDAQ: CPSI) and Glu Mobile (NASDAQ:GLUU) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Institutional and Insider Ownership

92.1% of Computer Programs & Systems shares are held by institutional investors. Comparatively, 45.9% of Glu Mobile shares are held by institutional investors. 4.8% of Computer Programs & Systems shares are held by insiders. Comparatively, 5.8% of Glu Mobile shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Computer Programs & Systems and Glu Mobile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Computer Programs & Systems 1 4 1 0 2.00
Glu Mobile 0 2 4 0 2.67

Computer Programs & Systems currently has a consensus price target of $29.25, indicating a potential downside of 11.90%. Glu Mobile has a consensus price target of $4.96, indicating a potential downside of 20.41%. Given Computer Programs & Systems’ higher possible upside, analysts plainly believe Computer Programs & Systems is more favorable than Glu Mobile.

Earnings and Valuation

This table compares Computer Programs & Systems and Glu Mobile’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Computer Programs & Systems $276.93 million 1.69 -$17.10 million $1.33 24.96
Glu Mobile $286.83 million 3.03 -$97.57 million ($0.51) -12.22

Computer Programs & Systems has higher earnings, but lower revenue than Glu Mobile. Glu Mobile is trading at a lower price-to-earnings ratio than Computer Programs & Systems, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Computer Programs & Systems has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Glu Mobile has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares Computer Programs & Systems and Glu Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Computer Programs & Systems -4.83% 14.77% 6.60%
Glu Mobile -26.33% -34.72% -19.81%

Dividends

Computer Programs & Systems pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Glu Mobile does not pay a dividend. Computer Programs & Systems pays out 30.1% of its earnings in the form of a dividend.

Summary

Computer Programs & Systems beats Glu Mobile on 9 of the 16 factors compared between the two stocks.

About Computer Programs & Systems

Computer Programs and Systems, Inc. provides healthcare information technology solutions and services in the United States and the Caribbean nation of St. Maarten. Its software systems include patient management software that enables a hospital to identify a patient at various points in the healthcare delivery system, as well as helps to collect and maintain patient information throughout the process of patient care; and financial accounting software, which offers business office applications to track and coordinate information needed for managerial decision-making. The company also provides clinical software that automates record keeping and reporting for various clinical functions; patient care applications; and enterprise applications that support its products for use in various areas of the hospital. In addition, it offers Healthland Centriq, a Web-based electronic health record platform that centralizes data from various care areas; and Healthland Classic that offers a suite of integrated applications for managing operations, resources, and people, as well as for ambulatory information management solutions. Further, the company provides software solutions that promote data-driven clinical and financial outcomes for customers in the post-acute care industry; software application support, hardware maintenance, and education and related services; business management, consulting, and managed information technology services for community healthcare enterprises. Additionally, it provides Software as a Service based healthcare revenue cycle management solutions; system implementation and training services; and forms and office supplies. It serves community hospitals and physician clinics, skilled nursing and assisted living facilities, and small specialty hospitals. Computer Programs and Systems, Inc. was founded in 1979 and is based in Mobile, Alabama.

About Glu Mobile

Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles in four genres, including home décor, sports and action, fashion and celebrity, and time management. It creates games based on its own brands, including Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, and QuizUp. The company also creates games based on third-party licensed brands, such as Restaurant Dash with Gordon Ramsay and Kim Kardashian; and Hollywood, MLB Tap Sports Baseball, and Racing Rivals. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts worldwide. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was incorporated in 2001 and is headquartered in San Francisco, California.

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