Crossroads Systems (OTCMKTS:CRDSQ) & Qumu (QUMU) Critical Survey

Crossroads Systems (OTCMKTS: CRDSQ) and Qumu (NASDAQ:QUMU) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Valuation & Earnings

This table compares Crossroads Systems and Qumu’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Crossroads Systems N/A N/A N/A ($1.08) -2.50
Qumu $31.68 million 0.55 -$11.17 million ($0.94) -1.99

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

Risk and Volatility

Crossroads Systems has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500. Comparatively, Qumu has a beta of -0.84, indicating that its stock price is 184% less volatile than the S&P 500.

Profitability

This table compares Crossroads Systems and Qumu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Crossroads Systems -518.75% -22.99% -7.88%
Qumu -28.91% -56.82% -22.32%

Analyst Recommendations

This is a breakdown of recent recommendations for Crossroads Systems and Qumu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Crossroads Systems 0 0 0 0 N/A
Qumu 0 0 0 0 N/A

Institutional & Insider Ownership

7.5% of Crossroads Systems shares are held by institutional investors. Comparatively, 22.5% of Qumu shares are held by institutional investors. 27.4% of Crossroads Systems shares are held by insiders. Comparatively, 14.3% of Qumu shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Qumu beats Crossroads Systems on 5 of the 9 factors compared between the two stocks.

Crossroads Systems Company Profile

Crossroads Systems, Inc. is an intellectual property licensing company. The Company’s intellectual property assets are identified in two distinct categories: the first category is known as the 972 patent family and the second category is known as the non-972 patents. As of October 31, 2016, the 972 patent family consisted of 31 patents and pending patents that are primarily concentrated around access controls. As of October 31, 2016, the non-972 patents consisted of 140 patents and pending patents that are primarily directed to five product families: optimizing command processing, enabling interoperability, managing networks, enhancing tape libraries and improving data systems. As of October 31, 2016, approximately 50 companies have licensed 972 patents from the Company. The Company’s subsidiaries include Crossroads Systems (Texas), Inc. and Crossroads Europe GmbH.

Qumu Company Profile

Qumu Corporation (Qumu) is an enterprise video content management software company. The Company is engaged in providing tools businesses need to create, manage, secure, deliver and measure their videos. The Company operates through the enterprise video content management software business segment. Its video content management software solutions allow organizations to create, capture, organize and deliver content across the extended enterprise to a range of end points, including mobile devices and thick or thin clients. Qumu’s video platform supports both live and on-demand streaming. The Qumu platform is a video content management software solution that can be deployed as a perpetual software license, a term software license or a cloud-hosted software as a service (SaaS). Qumu Capture Studio is a portable software-enabled device that records, edits and publishes video and presentation content.

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