DynTek (OTCMKTS:DYNE) and CSG Systems International (NASDAQ:CSGS) Financial Analysis

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

Institutional and Insider Ownership

91.1% of CSG Systems International shares are held by institutional investors. 4.5% of DynTek shares are held by insiders. Comparatively, 3.6% 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.

Analyst Ratings

This is a summary of current ratings and price targets for DynTek and CSG Systems International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DynTek	0	0	0	0	0.00
CSG Systems International	0	2	6	1	2.89

CSG Systems International has a consensus target price of $70.71, suggesting a potential upside of 12.96%. Given CSG Systems International’s stronger consensus rating and higher possible upside, analysts clearly believe CSG Systems International is more favorable than DynTek.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DynTek	N/A	N/A	N/A
CSG Systems International	6.95%	39.79%	7.92%

Earnings and Valuation

This table compares DynTek and CSG Systems International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DynTek	N/A	N/A	N/A	N/A	N/A
CSG Systems International	$1.20 billion	1.52	$86.85 million	$2.93	21.37

CSG Systems International has higher revenue and earnings than DynTek.

Summary

CSG Systems International beats DynTek on 9 of the 10 factors compared between the two stocks.

About DynTek

DynTek, Inc. provides professional information technology services to mid-market commercial businesses, state and local government agencies, and educational institutions. It offers infrastructure and data center solutions, including advanced networking, security, server virtualization, and servers and storage solutions; and Microsoft platform solutions comprising management and virtualization, messaging, communications, desktop, data platform, identity and security, portals and collaboration, and midmarket solutions. The company also provides endpoint computing solutions, such as desktop and application, application and desktop virtualization, and desktop management solutions; and talent acquisition and staff augmentation solutions. In addition, it engages in value-added resale of hardware and software products. The company was formerly known as TekInsight, Inc. and changed its name to DynTek, Inc. in December 2001. DynTek, Inc. was founded in 1989 and is headquartered in Newport Beach, California.

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.