Comparing China Information Technology (CNIT) and Square (SQ)

Square (NYSE: SQ) and China Information Technology (NASDAQ:CNIT) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Valuation and Earnings

This table compares Square and China Information Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Square $1.71 billion 9.38 -$171.59 million ($0.17) -242.65
China Information Technology $10.19 million 11.80 -$18.17 million N/A N/A

China Information Technology has lower revenue, but higher earnings than Square.

Institutional and Insider Ownership

54.2% of Square shares are owned by institutional investors. Comparatively, 1.1% of China Information Technology shares are owned by institutional investors. 32.7% of Square shares are owned by company insiders. Comparatively, 45.4% of China Information Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Square and China Information Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Square -3.04% -7.98% -3.18%
China Information Technology N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Square and China Information Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Square 1 13 21 0 2.57
China Information Technology 0 0 0 0 N/A

Square currently has a consensus price target of $34.83, suggesting a potential downside of 15.56%. Given Square’s higher possible upside, research analysts clearly believe Square is more favorable than China Information Technology.

Summary

China Information Technology beats Square on 6 of the 10 factors compared between the two stocks.

Square Company Profile

Square, Inc. (Square) is a commerce ecosystem. The Company enables its sellers start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. Once a seller downloads the Square Point of Sale mobile application, they can take their first payment. With its offering, a seller can accept payments in person via magnetic stripe (a swipe), Europay, MasterCard, and Visa (EMV) (a dip), or Near Field Communication (NFC) (a tap); or online via Square Invoices, Square Virtual Terminal, or the seller’s Website. Once on its system, sellers gain access to technology and features, such as reporting and analytics, next-day settlements, digital receipts, payment dispute management and chargeback protection, and Payment Card Industry (PCI) compliance. On the consumer (buyer) side, Square Cash offers individuals access to a way to send and receive money.

China Information Technology Company Profile

China Information Technology, Inc (CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, elevator safety management, education, etc. Through continuous innovation, CNIT is aiming to leverage its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community.

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