Park City Group (NASDAQ:PCYG) and Castlight Health (NYSE:CSLT) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.
Volatility & Risk
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Park City Group has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Castlight Health has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
Earnings and Valuation
This table compares Park City Group and Castlight Health’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Park City Group||$22.04 million||7.21||$3.40 million||$0.15||53.33|
|Castlight Health||$156.40 million||3.61||-$39.71 million||($0.16)||-24.56|
Park City Group has higher earnings, but lower revenue than Castlight Health. Castlight Health is trading at a lower price-to-earnings ratio than Park City Group, indicating that it is currently the more affordable of the two stocks.
This table compares Park City Group and Castlight Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Park City Group||18.95%||11.07%||8.92%|
Insider and Institutional Ownership
27.9% of Park City Group shares are owned by institutional investors. Comparatively, 51.2% of Castlight Health shares are owned by institutional investors. 39.9% of Park City Group shares are owned by insiders. Comparatively, 22.6% of Castlight Health shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of current recommendations and price targets for Park City Group and Castlight Health, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Park City Group||0||0||0||0||N/A|
Castlight Health has a consensus price target of $5.20, suggesting a potential upside of 32.32%. Given Castlight Health’s higher probable upside, analysts clearly believe Castlight Health is more favorable than Park City Group.
Park City Group beats Castlight Health on 9 of the 13 factors compared between the two stocks.
About Park City Group
Park City Group, Inc., a software-as-a-service provider, designs, develops, and markets proprietary software products in the United States. The company offers ReposiTrak MarketPlace, a supplier discovery and B2B e-commerce solution that is used for sourcing products, and enables to screen and choose suppliers; ReposiTrak Compliance and Food Safety Solutions, which reduces potential regulatory and legal risk from their supply chain partners; and ReposiTrak Supply Chain Solutions, which enables customers to manage relationships with suppliers. It also provides ScoreTracker, Vendor Managed Inventory, Store Level Ordering and Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager, and ActionManager supply chain solutions. In addition, it provides business-consulting services to suppliers and retailers in the grocery, convenience store, and specialty retail industries, as well as professional consulting services. The company primarily serves multi-store retail chains, wholesalers and distributors, and suppliers. Park City Group, Inc. was founded in 1990 and is headquartered in Salt Lake City, Utah.
About Castlight Health
Castlight Health, Inc. provides a software-as-a-service platform used for health benefits navigation for employees in the United States. Its platform matches employees to the resources their employers make available to them; managing a condition; and assists them to manage their benefits. The company also offers communication and testing, implementation, and user customer support services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government. The company was formerly known as Ventana Health Services and changed its name to Castlight Health, Inc. in April 2010. Castlight Health, Inc. was founded in 2008 and is headquartered in San Francisco, California.