Bridgeline Digital (NASDAQ: BLIN) and Computer Task Group (NASDAQ:CTG) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Bridgeline Digital and Computer Task Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridgeline Digital -9.83% -7.17% -4.66%
Computer Task Group 0.78% 4.50% 2.80%

Valuation and Earnings

This table compares Bridgeline Digital and Computer Task Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridgeline Digital $16.29 million 0.58 -$1.60 million ($0.45) -5.02
Computer Task Group $324.89 million 0.26 -$34.63 million $0.15 35.67

Bridgeline Digital has higher earnings, but lower revenue than Computer Task Group. Bridgeline Digital is trading at a lower price-to-earnings ratio than Computer Task Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bridgeline Digital and Computer Task Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridgeline Digital 0 0 0 0 N/A
Computer Task Group 0 0 1 0 3.00

Computer Task Group has a consensus target price of $9.00, indicating a potential upside of 68.22%. Given Computer Task Group’s higher possible upside, analysts clearly believe Computer Task Group is more favorable than Bridgeline Digital.

Institutional and Insider Ownership

6.0% of Bridgeline Digital shares are owned by institutional investors. Comparatively, 45.6% of Computer Task Group shares are owned by institutional investors. 33.8% of Bridgeline Digital shares are owned by insiders. Comparatively, 10.4% of Computer Task Group shares are owned 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.

Summary

Computer Task Group beats Bridgeline Digital on 9 of the 12 factors compared between the two stocks.

Bridgeline Digital Company Profile

Bridgeline Digital, Inc. is a digital engagement company. The Company’s iAPPS platform is a Web Engagement Management (WEM) platform that integrates Web Content Management, e-commerce, e-marketing, Social Media management and Web Analytics to help marketers deliver digital experiences that engage and convert their customers across all channels. The iAPPS platform is delivered through a cloud-based Software as a Service (SaaS) multi-tenant business model, which provides customers with deployment providing maintenance, daily technical operation and support, or through a perpetual licensing business model. The iAPPS suite of products includes iAPPS Experience Manager, iAPPS Content Manager, iAPPS Commerce, iAPPS Marketier, iAPPS Analyzer, iAPPSds and iAPPS Social. It offers various services, such as digital engagement services, digital strategy services, usability design and information architecture. It provides shared hosting, dedicated hosting and SaaS hosting for its customers.

Computer Task Group Company Profile

Computer Task Group, Incorporated (CTG) is an information technology (IT) solutions and staffing services company. The Company primarily operates in the segment of providing IT services to its clients. The Company has operations in North America and Europe. The Company is engaged in providing IT services, including IT Solutions, and IT and other Staffing. CTG provides these primary services to all of the markets that it serves. The services provided encompass the IT business solution life cycle, including phases for planning, developing, implementing, managing, and maintaining the IT solution. It provides administrative or warehouse employees to clients to supplement the IT resources. The Company promotes a portion of its services through five vertical market focus areas: technology service providers, manufacturing, healthcare (which includes services provided to healthcare providers, health insurers, and life sciences companies), financial services, and diversified industrials.

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