Head-To-Head Analysis: ECARX (NASDAQ:ECX) and CSP (NASDAQ:CSPI)

Profitability

This table compares CSP and ECARX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CSP	4.42%	5.38%	3.85%
ECARX	-22.01%	N/A	-30.30%

Risk and Volatility

CSP has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, ECARX has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Insider and Institutional Ownership

26.7% of CSP shares are owned by institutional investors. 16.6% of CSP shares are owned by company insiders. Comparatively, 20.0% of ECARX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CSP and ECARX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSP	$55.22 million	3.00	$5.20 million	($0.05)	-335.20
ECARX	$5.46 billion	0.12	-$132.42 million	($0.50)	-4.04

CSP has higher earnings, but lower revenue than ECARX. CSP is trading at a lower price-to-earnings ratio than ECARX, indicating that it is currently the more affordable of the two stocks.

Summary

CSP beats ECARX on 9 of the 11 factors compared between the two stocks.

About CSP

CSP Inc. develops and markets IT integration solutions, security products, managed IT services, cloud services, purpose-built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value-added reseller to various customers in web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; ARIA Zero Trust PROTECT that stopping the attacks that are used to attack critical infrastructure applications; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.

About ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.