Datasea (NASDAQ:DTSS) and CLPS Incorporation (NASDAQ:CLPS) Critical Review

Datasea (NASDAQ:DTSS) and CLPS Incorporation (NASDAQ:CLPS) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Risk & Volatility

Datasea has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, CLPS Incorporation has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Earnings & Valuation

This table compares Datasea and CLPS Incorporation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datasea	$56.89 million	0.16	-$5.09 million	($0.32)	-2.75
CLPS Incorporation	$166.79 million	0.19	-$7.05 million	N/A	N/A

Datasea has higher earnings, but lower revenue than CLPS Incorporation.

Analyst Ratings

This is a summary of recent ratings and target prices for Datasea and CLPS Incorporation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datasea	1	0	0	0	1.00
CLPS Incorporation	1	0	0	0	1.00

Institutional & Insider Ownership

82.1% of Datasea shares are held by institutional investors. Comparatively, 0.2% of CLPS Incorporation shares are held by institutional investors. 50.7% of Datasea shares are held by insiders. Comparatively, 58.7% of CLPS Incorporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Datasea and CLPS Incorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Datasea	-4.80%	-88.98%	-37.33%
CLPS Incorporation	N/A	N/A	N/A

Summary

CLPS Incorporation beats Datasea on 6 of the 9 factors compared between the two stocks.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.