Contrasting Datasea (NASDAQ:DTSS) & CLPS Incorporation (NASDAQ:CLPS)

CLPS Incorporation (NASDAQ:CLPS) and Datasea (NASDAQ:DTSS) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for CLPS Incorporation and Datasea, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLPS Incorporation	1	0	0	0	1.00
Datasea	1	0	0	0	1.00

Risk & Volatility

CLPS Incorporation has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Datasea has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares CLPS Incorporation and Datasea”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLPS Incorporation	$164.23 million	0.16	-$7.05 million	N/A	N/A
Datasea	$71.62 million	0.15	-$5.09 million	($0.32)	-3.31

Datasea has lower revenue, but higher earnings than CLPS Incorporation.

Insider & Institutional Ownership

0.2% of CLPS Incorporation shares are held by institutional investors. Comparatively, 82.1% of Datasea shares are held by institutional investors. 58.7% of CLPS Incorporation shares are held by insiders. Comparatively, 50.7% of Datasea shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares CLPS Incorporation and Datasea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CLPS Incorporation	N/A	N/A	N/A
Datasea	-4.80%	-88.98%	-37.33%

Summary

CLPS Incorporation beats Datasea on 6 of the 9 factors compared between the two stocks.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.