QXO (NASDAQ:QXO) versus CSG Systems International (NASDAQ:CSGS) Financial Review

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

Valuation & Earnings

This table compares QXO and CSG Systems International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QXO	$57.11 million	100.01	-$1.07 million	($1.76)	-7.93
CSG Systems International	$1.17 billion	1.20	$66.25 million	$2.19	21.61

CSG Systems International has higher revenue and earnings than QXO. QXO 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 QXO and CSG Systems International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QXO	-3.75%	0.51%	0.24%
CSG Systems International	5.53%	33.18%	6.59%

Analyst Recommendations

This is a breakdown of recent ratings for QXO and CSG Systems International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	0	0	0	0	N/A
CSG Systems International	0	1	4	0	2.80

CSG Systems International has a consensus target price of $58.80, suggesting a potential upside of 24.23%. Given CSG Systems International’s higher probable upside, analysts clearly believe CSG Systems International is more favorable than QXO.

Insider and Institutional Ownership

58.7% of QXO shares are held by institutional investors. Comparatively, 91.1% of CSG Systems International shares are held by institutional investors. 90.6% of QXO shares are held by company insiders. Comparatively, 3.1% of CSG Systems International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

QXO has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500. Comparatively, CSG Systems International has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Summary

CSG Systems International beats QXO on 10 of the 13 factors compared between the two stocks.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

About CSG Systems International

CSG Systems International, Inc., together with its subsidiaries, provides revenue management and digital monetization, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers Advanced Convergent Platform, a private SaaS platform; and related solutions, including service technician management, analytics, electronic bill presentment, etc. The company also provides a public SaaS-based revenue management and payments platform. In addition, it offers managed services; and professional services to implement, configure, and maintain its solutions, as well as licenses various solutions, such as mediation, partner management, rating, and charging. Further, the company provides operational services, including infrastructure management comprised of hardware, application, and environmental management; application configuration management, such as configuration development, release, and deployment; and business operations management, which includes event processing, revenue management, and settlement. It serves retail, financial services, healthcare, insurance, and government entities. The company was incorporated in 1994 and is headquartered in Englewood, Colorado.