Critical Contrast: PDF Solutions (NASDAQ:PDFS) vs. Cass Information Systems (NASDAQ:CASS)

PDF Solutions (NASDAQ:PDFS) and Cass Information Systems (NASDAQ:CASS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current ratings for PDF Solutions and Cass Information Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PDF Solutions	0	1	2	0	2.67
Cass Information Systems	0	0	1	0	3.00

PDF Solutions presently has a consensus price target of $33.33, indicating a potential upside of 72.00%. Cass Information Systems has a consensus price target of $48.00, indicating a potential upside of 12.25%. Given PDF Solutions’ higher probable upside, equities analysts plainly believe PDF Solutions is more favorable than Cass Information Systems.

Insider & Institutional Ownership

79.5% of PDF Solutions shares are held by institutional investors. Comparatively, 59.1% of Cass Information Systems shares are held by institutional investors. 11.1% of PDF Solutions shares are held by insiders. Comparatively, 3.2% of Cass Information Systems shares are held 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.

Risk and Volatility

PDF Solutions has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Cass Information Systems has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Profitability

This table compares PDF Solutions and Cass Information Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PDF Solutions	0.44%	4.22%	2.98%
Cass Information Systems	13.22%	9.02%	0.91%

Valuation & Earnings

This table compares PDF Solutions and Cass Information Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PDF Solutions	$179.46 million	4.26	$4.06 million	$0.02	969.00
Cass Information Systems	$199.19 million	2.84	$19.17 million	$1.86	22.99

Cass Information Systems has higher revenue and earnings than PDF Solutions. Cass Information Systems is trading at a lower price-to-earnings ratio than PDF Solutions, indicating that it is currently the more affordable of the two stocks.

Summary

PDF Solutions beats Cass Information Systems on 8 of the 14 factors compared between the two stocks.

About PDF Solutions

PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that store collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offer data collection and analysis capabilities; and Assembly Operations that provide device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides Design-For-Inspection (DFI) systems, such as DFI On-Chip Instruments; eProbe Non-Contact E-Beam Tool; and Characterization Vehicle (CV) system, which includes CV Test Chips and pdFasTest Electrical Testers, as well as Exensio characterization software, designed to analyze the measurements collected using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. PDF Solutions, Inc. was founded in 1991 and is headquartered in Santa Clara, California.

About Cass Information Systems

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company operates through two segments, Information Services and Banking Services. Its services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The company also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions, as well as church management software solution and on-line platform to provide generosity services for faith-based and non-profit organizations. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as demand, savings, time, and money market deposits; commercial, industrial, commercial real estate, and construction and land development loans; and cash management services to privately held businesses, restaurant franchises, and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and leased facilities in Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in Saint Louis, Missouri.