CSP Inc. (CSPI) vs TSS Inc. (TSSI)

CSP Inc. and TSS Inc. are both Information Technology Services companies. TSS Inc. is the larger, with a market value of $167.9M against $72.3M — 2.3× the size. CSP Inc. has negative trailing earnings, so its P/E is not meaningful; TSS Inc. trades at 10.6×. CSP Inc. grew revenue faster over the last twelve months: −0.68% against −14.2%. TSS Inc. has the higher net margin (8.45% vs −1.16%) and the higher return on invested capital (0.00% vs −9.70%). Across the 19 metrics below, TSS Inc. leads on 12 and CSP Inc. on 7.

Valuation

Metric CSPI TSSI Information Technology Services median
P/E n/m 10.63 16.12
P/S 1.24 0.92 1.14
P/B 1.59 2.24 1.73
Price to free cash flow n/m n/m 13.77
EV/EBITDA n/m 12.53 9.89
EV/Sales 0.81 0.72 1.34
Earnings yield (0.95%) 9.41% 3.10%
Free cash flow yield (2.04%) (4.73%) 0.06%

Profitability

Metric CSPI TSSI Information Technology Services median
Gross margin 33.08% 18.26% 30.04%
Operating margin (5.35%) 0.00% 1.81%
Net margin (1.16%) 8.45% 0.79%
Free cash flow margin (2.48%) (4.35%) 0.00%
Return on equity (1.44%) 23.33% 0.00%
Return on assets (0.96%) 10.43% 0.00%
Return on invested capital (9.70%) 0.00% 0.00%

Growth

Metric CSPI TSSI Information Technology Services median
Revenue growth (TTM) (0.68%) (14.22%) 4.85%
EPS growth (last fiscal year) 75.00% 133.33% 3.57%
Revenue growth, 5-year CAGR (1.01%) 40.39% 6.93%
Net income growth, 5-year CAGR 0.00% 186.03% 0.00%

Health

Metric CSPI TSSI Information Technology Services median
Debt to equity 0.00 0.18 0.31
Current ratio 2.40 1.79 1.69
Net debt to EBITDA 11.39 (6.65) 0.55

Dividend

Metric CSPI TSSI Information Technology Services median
Dividend yield 1.63% — 1.97%
Payout ratio — — 0.29

Size

Metric CSPI TSSI Information Technology Services median
Market cap 72.28m 167.90m 1.02b

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