Head to Head Comparison: CSG Systems International (NASDAQ:CSGS) and Reddit (NYSE:RDDT)

CSG Systems International (NASDAQ:CSGS) and Reddit (NYSE:RDDT) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Earnings and Valuation

This table compares CSG Systems International and Reddit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSG Systems International	$1.17 billion	1.36	$66.25 million	$2.27	24.11
Reddit	$804.03 million	32.74	-$90.82 million	N/A	N/A

CSG Systems International has higher revenue and earnings than Reddit.

Institutional & Insider Ownership

91.1% of CSG Systems International shares are held by institutional investors. 3.1% of CSG Systems International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares CSG Systems International and Reddit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSG Systems International	5.52%	32.77%	6.61%
Reddit	-47.83%	-40.54%	-27.32%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CSG Systems International and Reddit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSG Systems International	0	1	3	0	2.75
Reddit	1	6	11	1	2.63

CSG Systems International currently has a consensus target price of $62.00, suggesting a potential upside of 13.30%. Reddit has a consensus target price of $103.17, suggesting a potential downside of 31.18%. Given CSG Systems International’s stronger consensus rating and higher possible upside, analysts plainly believe CSG Systems International is more favorable than Reddit.

Summary

CSG Systems International beats Reddit on 9 of the 12 factors compared between the two stocks.

About CSG Systems International

CSG Systems International, Inc., together with its subsidiaries, provides revenue management and digital monetization, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers Advanced Convergent Platform, a private SaaS platform; and related solutions, including service technician management, analytics, electronic bill presentment, etc. The company also provides a public SaaS-based revenue management and payments platform. In addition, it offers managed services; and professional services to implement, configure, and maintain its solutions, as well as licenses various solutions, such as mediation, partner management, rating, and charging. Further, the company provides operational services, including infrastructure management comprised of hardware, application, and environmental management; application configuration management, such as configuration development, release, and deployment; and business operations management, which includes event processing, revenue management, and settlement. It serves retail, financial services, healthcare, insurance, and government entities. The company was incorporated in 1994 and is headquartered in Englewood, Colorado.

About Reddit

Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.