Samsara (NYSE:IOT) vs. CSP (NASDAQ:CSPI) Head to Head Review

CSP (NASDAQ:CSPI) and Samsara (NYSE:IOT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Insider & Institutional Ownership

26.7% of CSP shares are owned by institutional investors. Comparatively, 96.0% of Samsara shares are owned by institutional investors. 16.6% of CSP shares are owned by company insiders. Comparatively, 60.0% of Samsara shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares CSP and Samsara’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSP	0.14%	0.17%	0.12%
Samsara	-21.80%	-19.44%	-10.30%

Analyst Recommendations

This is a breakdown of recent ratings for CSP and Samsara, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSP	0	0	0	0	0.00
Samsara	0	8	9	0	2.53

Samsara has a consensus price target of $50.00, indicating a potential upside of 23.33%. Given Samsara’s stronger consensus rating and higher possible upside, analysts clearly believe Samsara is more favorable than CSP.

Risk and Volatility

CSP has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Samsara has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Valuation & Earnings

This table compares CSP and Samsara”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSP	$54.96 million	2.15	-$330,000.00	($0.16)	-74.81
Samsara	$1.34 billion	17.28	-$286.73 million	($0.22)	-184.27

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

Summary

Samsara beats CSP on 8 of the 14 factors compared between the two stocks.

About CSP

CSP Inc. develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value-added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; ARIA Zero Trust PROTECT that stopping the attacks that are used to attack critical infrastructure applications; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.

About Samsara

Samsara Inc. provides solutions that connects physical operations data to its connected operations cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy. Its applications include video-based safety that enables customers to build a safety program and protect their teams with AI-enabled video; vehicle telematics which provides visibility into real-time vehicle location and diagnostics with GPS tracking, routing and dispatch, fuel efficiency management, electric vehicle usage and charge planning, preventative maintenance, and insights to manage fuel and energy costs; and mobile apps and workflows that improves productivity for frontline workers and enables regulatory compliance for workers to see upcoming jobs, capture electronic documents, perform maintenance inspections, maintain compliance logs, and message with back-office administration. The company also provides equipment monitoring which offers visibility and management of unpowered and powered assets, ranging from generators and compressors to heavy construction equipment and trailers to improve operating efficiency, prevent unplanned downtime, and avoid critical safety and compliance issues; and site visibility that provides remote visibility into sites to improve onsite security, safety, and incident response times. It serves transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, healthcare and education, manufacturing, food and beverage, and other industries, as well as government. Samsara Inc. was incorporated in 2015 and is headquartered in San Francisco, California.