Comparing USA Technologies (USAT) & Computer Programs and Systems (CPSI)

USA Technologies (NASDAQ: USAT) and Computer Programs and Systems (NASDAQ:CPSI) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Insider and Institutional Ownership

36.8% of USA Technologies shares are owned by institutional investors. Comparatively, 99.1% of Computer Programs and Systems shares are owned by institutional investors. 4.4% of USA Technologies shares are owned by insiders. Comparatively, 3.7% of Computer Programs and Systems shares are owned 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 USA Technologies and Computer Programs and Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USA Technologies 0.37% 1.40% 0.96%
Computer Programs and Systems 2.32% 10.01% 4.63%

Analyst Recommendations

This is a summary of current ratings for USA Technologies and Computer Programs and Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Technologies 0 0 2 0 3.00
Computer Programs and Systems 1 3 1 0 2.00

USA Technologies presently has a consensus target price of $7.25, suggesting a potential upside of 2.84%. Computer Programs and Systems has a consensus target price of $29.40, suggesting a potential upside of 4.63%. Given Computer Programs and Systems’ higher possible upside, analysts clearly believe Computer Programs and Systems is more favorable than USA Technologies.

Volatility and Risk

USA Technologies has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Computer Programs and Systems has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.

Dividends

Computer Programs and Systems pays an annual dividend of $1.20 per share and has a dividend yield of 4.3%. USA Technologies does not pay a dividend. Computer Programs and Systems pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares USA Technologies and Computer Programs and Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
USA Technologies $104.09 million 3.40 -$1.85 million $0.01 705.71
Computer Programs and Systems $267.27 million 1.45 $3.89 million $0.45 62.44

Computer Programs and Systems has higher revenue and earnings than USA Technologies. Computer Programs and Systems is trading at a lower price-to-earnings ratio than USA Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Computer Programs and Systems beats USA Technologies on 9 of the 16 factors compared between the two stocks.

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.

Computer Programs and Systems Company Profile

Computer Programs and Systems, Inc. (CPSI) is a provider of healthcare information technology (IT) solutions for rural and community hospitals, and post-acute care facilities. The Company’s segments include acute care EHR, post-acute care EHR, and TruBridge, Rycan, and other outsourcing. Its Acute Care EHR segment consists of acute care software solutions and supports sales generated by its subsidiaries, Evident, LLC (Evident) and Healthland Inc. (Healthland). Its Post-acute Care EHR segment consists of post-acute care software solutions and support sales generated by American HealthTech, Inc. (AHT). Its TruBridge, Rycan, and Other Outsourcing segment primarily consists of business management, consulting and managed IT services sales generated by TruBridge, LLC (TruBridge) and the sale of Rycan Technologies, Inc.’s (Rycan’s) revenue cycle management workflow and automation software.

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