Insight Enterprises (NASDAQ: NSIT) and USA Technologies (NASDAQ:USAT) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.
Institutional and Insider Ownership
97.2% of Insight Enterprises shares are held by institutional investors. Comparatively, 51.2% of USA Technologies shares are held by institutional investors. 1.4% of Insight Enterprises shares are held by company insiders. Comparatively, 4.4% of USA Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for Insight Enterprises and USA Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insight Enterprises presently has a consensus price target of $50.50, indicating a potential upside of 35.06%. USA Technologies has a consensus price target of $12.00, indicating a potential upside of 29.03%. Given Insight Enterprises’ higher possible upside, analysts clearly believe Insight Enterprises is more favorable than USA Technologies.
Valuation and Earnings
This table compares Insight Enterprises and USA Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Insight Enterprises||$5.49 billion||0.24||$84.68 million||$2.70||13.85|
|USA Technologies||$104.09 million||4.79||-$1.85 million||N/A||N/A|
Insight Enterprises has higher revenue and earnings than USA Technologies.
This table compares Insight Enterprises and USA Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Insight Enterprises has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, USA Technologies has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Insight Enterprises beats USA Technologies on 8 of the 13 factors compared between the two stocks.
Insight Enterprises Company Profile
Insight Enterprises, Inc. is engaged in providing information technology (IT) hardware, software, and cloud and service solutions to business, government, healthcare and educational clients. The Company operates through three segments: North America, EMEA and APAC. North America comprises the United States and Canada; EMEA comprises Europe, the Middle East and Africa, and APAC comprises Asia Pacific. The Company consults, designs, implements and manages integrated IT solutions for its customers. Its offerings in North America and select countries in Europe, the Middle East and Africa include a suite of IT hardware, software and services solutions. Its offerings in the remainder of EMEA and APAC segments are software and select software-related services. Its cloud management platform serves as a marketplace for its clients to buy and manage their cloud subscriptions with options that manage their software-as-a-service and infrastructure-as-a-service management capabilities.
USA Technologies Company Profile
USA Technologies, Inc. provides technology-enabled solutions and value-added services that facilitate electronic payment transactions within the unattended point of sale (POS) market. The Company is a provider in the small ticket, beverage and food vending industry and is also engaged in offering solutions and services to other unattended market segments, such as amusement, commercial laundry, kiosk and others. It has designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (M2M) services, which include the ability to remotely monitor, control and report on the results of distributed assets containing its electronic payment solutions. The Company derives its revenues from license and transaction fees resulting from connections to, as well as services provided by, its ePort Connect service.
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