Critical Survey: Vertiv (NYSE:VRT) and CLPS Incorporation (NASDAQ:CLPS)

CLPS Incorporation (NASDAQ:CLPS) and Vertiv (NYSE:VRT) 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, valuation, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CLPS Incorporation and Vertiv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLPS Incorporation	1	0	0	0	1.00
Vertiv	1	3	22	1	2.85

Vertiv has a consensus target price of $322.32, indicating a potential downside of 0.55%. Given Vertiv’s stronger consensus rating and higher possible upside, analysts plainly believe Vertiv is more favorable than CLPS Incorporation.

Risk & Volatility

CLPS Incorporation has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Vertiv has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500.

Insider and Institutional Ownership

0.2% of CLPS Incorporation shares are owned by institutional investors. Comparatively, 89.9% of Vertiv shares are owned by institutional investors. 58.7% of CLPS Incorporation shares are owned by company insiders. Comparatively, 1.1% of Vertiv shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CLPS Incorporation	N/A	N/A	N/A
Vertiv	14.37%	49.90%	15.79%

Valuation & Earnings

This table compares CLPS Incorporation and Vertiv”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLPS Incorporation	$164.23 million	0.17	-$7.05 million	N/A	N/A
Vertiv	$10.23 billion	12.17	$1.33 billion	$3.98	81.43

Vertiv has higher revenue and earnings than CLPS Incorporation.

Summary

Vertiv beats CLPS Incorporation on 12 of the 13 factors compared between the two stocks.

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.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.