Fang (NYSE:SFUN) vs. CSG Systems International (NYSE:CSGS) Critical Survey

Fang (NYSE:SFUN) and CSG Systems International (NASDAQ:CSGS) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and price targets for Fang and CSG Systems International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fang 2 0 0 0 1.00
CSG Systems International 0 1 1 0 2.50

Fang presently has a consensus target price of $7.78, indicating a potential upside of 304.95%. CSG Systems International has a consensus target price of $58.00, indicating a potential upside of 2.56%. Given Fang’s higher possible upside, analysts clearly believe Fang is more favorable than CSG Systems International.

Dividends

CSG Systems International pays an annual dividend of $0.89 per share and has a dividend yield of 1.6%. Fang does not pay a dividend. CSG Systems International pays out 34.1% of its earnings in the form of a dividend.

Risk and Volatility

Fang has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Valuation & Earnings

This table compares Fang and CSG Systems International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fang $303.02 million 0.57 -$114.91 million $0.50 3.84
CSG Systems International $875.06 million 2.13 $66.13 million $2.61 21.67

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

Profitability

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

Net Margins Return on Equity Return on Assets
Fang -11.09% -3.90% -1.33%
CSG Systems International 8.20% 26.74% 8.54%

Institutional and Insider Ownership

37.5% of Fang shares are held by institutional investors. Comparatively, 97.2% of CSG Systems International shares are held by institutional investors. 1.9% 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.

Summary

CSG Systems International beats Fang on 14 of the 16 factors compared between the two stocks.

Fang Company Profile

Fang Holdings Limited operates a real estate Internet portal in the People's Republic of China. The company's portal offers listing, marketing, e-commerce, financial, and other value-added services. It supports active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors. The company was formerly known as SouFun Holdings Limited and changed its name to Fang Holdings Limited in September 2016. Fang Holdings Limited was founded in 1999 and is headquartered in Beijing, China.

CSG Systems International Company Profile

CSG Systems International, Inc. provides business support solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers revenue management and digital monetization solutions, including Advanced Convergent Platform, a pre-integrated hybrid cloud-based platform; and Ascendon, Singleview, Total Service Mediation, and Wholesale Business Management Solution platforms. It also provides customer communications management solutions, such as field force automation, analytics, electronic bill presentment, ACH, etc. for processing voice, SMS/text, print, and email messages; and payment solutions, such as cloud-based integrated suite of products and solutions. In addition, the company offers managed services; and professional services to implement, configure, and maintain its products, as well as licenses products, such as mediation, partner management, rating, and charging. It serves the media, entertainment, government, insurance, and health care industries. The company was founded in 1994 and is headquartered in Greenwood Village, Colorado.

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