Reviewing CSP (NASDAQ:CSPI) & Super League Enterprise (NASDAQ:SLE)

CSP (NASDAQ:CSPI) and Super League Enterprise (NASDAQ:SLE) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Dividends

CSP pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Super League Enterprise pays an annual dividend of $0.46 per share and has a dividend yield of 42.2%. CSP pays out 21.4% of its earnings in the form of a dividend. Super League Enterprise pays out -5.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CSP has increased its dividend for 1 consecutive years. Super League Enterprise is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares CSP and Super League Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSP	8.18%	10.99%	7.67%
Super League Enterprise	-109.20%	-228.35%	-115.53%

Insider & Institutional Ownership

26.7% of CSP shares are owned by institutional investors. Comparatively, 2.1% of Super League Enterprise shares are owned by institutional investors. 16.6% of CSP shares are owned by insiders. Comparatively, 5.4% of Super League Enterprise shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares CSP and Super League Enterprise’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSP	$64.65 million	2.19	$5.20 million	$0.56	25.88
Super League Enterprise	$25.97 million	0.30	-$30.33 million	($8.88)	-0.12

CSP has higher revenue and earnings than Super League Enterprise. Super League Enterprise is trading at a lower price-to-earnings ratio than CSP, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

CSP has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Super League Enterprise has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CSP and Super League Enterprise, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSP	0	0	0	0	N/A
Super League Enterprise	0	0	2	0	3.00

Super League Enterprise has a consensus target price of $3.00, suggesting a potential upside of 175.23%. Given Super League Enterprise’s higher probable upside, analysts plainly believe Super League Enterprise is more favorable than CSP.

Summary

CSP beats Super League Enterprise on 11 of the 16 factors compared between the two stocks.

About CSP

CSP Inc. develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value-added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; ARIA Zero Trust PROTECT that stopping the attacks that are used to attack critical infrastructure applications; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.

About Super League Enterprise

Super League Enterprise, Inc. builds and operates networks of games, monetization tools, and content channels across metaverse gaming platforms that empower developers, energize players, and entertain fans. The company's solutions provide access to an audience consisting of players in the metaverse environments, fans of various gaming influencers, and viewers of gameplay content across social media and digital video platforms. The company's platform includes access to in-game communities, a metaverse advertising platform, and a network of highly viewed channels and original shows on Instagram, TikTok, Snap, YouTube, and Twitch, as well as cloud-based livestream production tools and an esports invitational tournament series. Its properties also deliver opportunities for brands and advertisers to achieve insights and marketing outcomes with gamers of various ages. The company was formerly known as Super League Gaming, Inc. and changed its name to Super League Enterprise, Inc. in September 2023. Super League Enterprise, Inc. was incorporated in 2014 and is headquartered in Santa Monica, California.