XChange TEC.INC. (NASDAQ:XHG) vs. Climb Global Solutions (NASDAQ:CLMB) Financial Contrast

Climb Global Solutions (NASDAQ:CLMB) and XChange TEC.INC. (NASDAQ:XHG) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Volatility and Risk

Climb Global Solutions has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, XChange TEC.INC. has a beta of -1.02, indicating that its stock price is 202% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Climb Global Solutions and XChange TEC.INC., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Climb Global Solutions	0	1	2	0	2.67
XChange TEC.INC.	1	0	0	0	1.00

Climb Global Solutions currently has a consensus price target of $136.00, suggesting a potential upside of 17.19%. Given Climb Global Solutions’ stronger consensus rating and higher probable upside, research analysts clearly believe Climb Global Solutions is more favorable than XChange TEC.INC..

Profitability

This table compares Climb Global Solutions and XChange TEC.INC.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Climb Global Solutions	3.44%	26.52%	6.49%
XChange TEC.INC.	N/A	N/A	N/A

Institutional and Insider Ownership

49.7% of Climb Global Solutions shares are owned by institutional investors. 6.1% of Climb Global Solutions shares are owned by insiders. Comparatively, 0.6% of XChange TEC.INC. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Climb Global Solutions and XChange TEC.INC.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Climb Global Solutions	$465.61 million	1.15	$18.61 million	$4.65	24.96
XChange TEC.INC.	$41.09 million	0.00	-$32.32 million	N/A	N/A

Climb Global Solutions has higher revenue and earnings than XChange TEC.INC..

Summary

Climb Global Solutions beats XChange TEC.INC. on 12 of the 12 factors compared between the two stocks.

About Climb Global Solutions

Climb Global Solutions Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions; and provides cloud solutions and resells software, hardware, and services under the name Grey Matter. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers. In addition, the company offers a line of products from various software vendors; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. It markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials. The company was formerly known as Wayside Technology Group, Inc. and changed its name to Climb Global Solutions Inc. in October 2022. Climb Global Solutions Inc. was incorporated in 1982 and is headquartered in Eatontown, New Jersey.

About XChange TEC.INC.

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.