Contrasting Netlist (OTCMKTS:NLST) & Climb Global Solutions (NASDAQ:CLMB)

Climb Global Solutions (NASDAQ:CLMB) and Netlist (OTCMKTS:NLST) are both small-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and Volatility

Climb Global Solutions has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Netlist has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Climb Global Solutions	2.88%	18.87%	5.04%
Netlist	0.24%	-29.40%	1.22%

Analyst Ratings

This is a summary of current recommendations for Climb Global Solutions and Netlist, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Climb Global Solutions	0	2	2	1	2.80
Netlist	0	1	1	0	2.50

Climb Global Solutions currently has a consensus target price of $31.00, indicating a potential upside of 11.47%. Netlist has a consensus target price of $5.00, indicating a potential upside of 27.55%. Given Netlist’s higher possible upside, analysts clearly believe Netlist is more favorable than Climb Global Solutions.

Valuation and Earnings

This table compares Climb Global Solutions and Netlist”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Climb Global Solutions	$652.52 million	0.80	$21.33 million	$1.12	24.83
Netlist	$188.63 million	6.94	-$24.82 million	N/A	N/A

Climb Global Solutions has higher revenue and earnings than Netlist.

Insider and Institutional Ownership

49.7% of Climb Global Solutions shares are owned by institutional investors. Comparatively, 0.0% of Netlist shares are owned by institutional investors. 3.8% of Climb Global Solutions shares are owned by company insiders. Comparatively, 4.0% of Netlist shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Climb Global Solutions beats Netlist on 9 of the 13 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 Netlist

Netlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. The company portfolio of proprietary technologies and design techniques, includes efficient planar design, alternative packaging techniques, and custom semiconductor logic, to deliver memory subsystems; and sells specialty memory modules and flash-based products for use in data center and industrial applications. It resells component products, including solid state drive (SSD), NAND flash, and dual inline memory module (DIMM) to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.