Critical Analysis: CalAmp (NASDAQ:CAMP) & Casa Systems (CASA)

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CalAmp (NASDAQ:CAMP) and Casa Systems (NASDAQ:CASA) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Valuation and Earnings

This table compares CalAmp and Casa Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CalAmp $365.91 million 1.85 $16.61 million $0.92 21.13
Casa Systems $351.58 million 3.36 $88.50 million $0.79 17.33

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

Insider & Institutional Ownership

77.2% of CalAmp shares are held by institutional investors. Comparatively, 60.7% of Casa Systems shares are held by institutional investors. 5.4% of CalAmp shares are held by insiders. Comparatively, 65.2% of Casa Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for CalAmp and Casa Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CalAmp 0 3 4 0 2.57
Casa Systems 0 2 6 0 2.75

CalAmp presently has a consensus target price of $28.33, indicating a potential upside of 45.75%. Casa Systems has a consensus target price of $22.00, indicating a potential upside of 60.70%. Given Casa Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Casa Systems is more favorable than CalAmp.

Profitability

This table compares CalAmp and Casa Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CalAmp 3.88% 16.87% 6.67%
Casa Systems N/A 221.41% 14.55%

Summary

Casa Systems beats CalAmp on 8 of the 13 factors compared between the two stocks.

About CalAmp

CalAmp Corp. provides in telematics systems, and software and subscription services worldwide. The company provides mobile resource management telematics devices for the Internet of Things market, which enable customers to optimize their operations by collecting, monitoring, and reporting business-critical information and desired intelligence from remote and mobile assets. It also offers a portfolio of wireless networking products, including asset tracking units, mobile telematics devices, and fixed and mobile wireless gateways and routers; telematics cloud platform applications; and software as a service applications. The company sells its products and services to customers in the transportation, government, construction, and automotive markets through direct sales organization, a network of licensees, and sales representatives, as well as through Websites and digital presence. CalAmp Corp. was founded in 1981 and is headquartered in Irvine, California.

About Casa Systems

Casa Systems, Inc. provides software-centric broadband products in North America, Latin America, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers software-centric infrastructure solutions that allow cable service providers to deliver voice, video, and data services over a single platform at multi-gigabit speeds. It also provides solutions for next-generation centralized, distributed, and virtualized architectures for cable broadband, fixed-line broadband, and wireless networks. Casa Systems, Inc. was founded in 2003 and is headquartered in Andover, Massachusetts.

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