Climb Global Solutions (NASDAQ:CLMB) versus Algorhythm (NASDAQ:RIME) Head-To-Head Contrast

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

Risk & Volatility

Climb Global Solutions has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Algorhythm has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Climb Global Solutions	$465.61 million	1.26	$18.61 million	$4.82	26.35
Algorhythm	$23.49 million	0.23	-$23.26 million	N/A	N/A

Climb Global Solutions has higher revenue and earnings than Algorhythm.

Insider and Institutional Ownership

49.7% of Climb Global Solutions shares are held by institutional investors. 6.1% of Climb Global Solutions shares are held by insiders. Comparatively, 9.4% of Algorhythm shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Climb Global Solutions and Algorhythm, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Climb Global Solutions	0	0	1	0	3.00
Algorhythm	0	0	0	1	4.00

Climb Global Solutions currently has a consensus target price of $136.00, indicating a potential upside of 7.09%. Algorhythm has a consensus target price of $5.00, indicating a potential upside of 136.97%. Given Algorhythm’s stronger consensus rating and higher probable upside, analysts clearly believe Algorhythm is more favorable than Climb Global Solutions.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Climb Global Solutions	3.82%	29.16%	6.77%
Algorhythm	-105.18%	N/A	-166.60%

Summary

Climb Global Solutions beats Algorhythm 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 Algorhythm

Algorhythm Holdings, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; connected vehicle karaoke devices; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The company was formerly known as The Singing Machine Company, Inc. and changed its name to Algorhythm Holdings, Inc. in September 2024. Algorhythm Holdings, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.