Reviewing Cass Information Systems (NASDAQ:CASS) & XBP Europe (NASDAQ:XBP)

Cass Information Systems (NASDAQ:CASS) and XBP Europe (NASDAQ:XBP) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices for Cass Information Systems and XBP Europe, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cass Information Systems	0	0	1	0	3.00
XBP Europe	0	0	0	0	0.00

Cass Information Systems currently has a consensus target price of $45.00, suggesting a potential upside of 0.29%. Given Cass Information Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Cass Information Systems is more favorable than XBP Europe.

Valuation & Earnings

This table compares Cass Information Systems and XBP Europe”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cass Information Systems	$197.51 million	3.08	$30.06 million	$1.66	27.03
XBP Europe	$166.57 million	0.21	-$11.05 million	N/A	N/A

Cass Information Systems has higher revenue and earnings than XBP Europe.

Profitability

This table compares Cass Information Systems and XBP Europe’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cass Information Systems	11.52%	9.92%	0.99%
XBP Europe	-9.50%	N/A	-14.57%

Volatility and Risk

Cass Information Systems has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, XBP Europe has a beta of -0.32, suggesting that its share price is 132% less volatile than the S&P 500.

Institutional & Insider Ownership

59.1% of Cass Information Systems shares are held by institutional investors. Comparatively, 15.7% of XBP Europe shares are held by institutional investors. 2.4% of Cass Information Systems shares are held by insiders. Comparatively, 82.5% of XBP Europe shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Cass Information Systems beats XBP Europe on 11 of the 12 factors compared between the two stocks.

About Cass Information Systems

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. The company operates through two segments, Information Services and Banking Services. Its services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. The company also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions, as well as church management software solution and on-line platform to provide generosity services for faith-based and non-profit organizations. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as demand, savings, time, and money market deposits; commercial, industrial, commercial real estate, and construction and land development loans; and cash management services to privately held businesses, restaurant franchises, and faith-related ministries. Further, it provides B2B payment platform for clients that require an agile fintech partner. It operates through its banking facility near downtown St. Louis, Missouri; operating branch in the Bridgeton, Missouri; and leased facilities in Colorado Springs, Colorado. The company was formerly known as Cass Commercial Corporation and changed its name to Cass Information Systems, Inc. in January 2001. Cass Information Systems, Inc. was founded in 1906 and is headquartered in Saint Louis, Missouri.

About XBP Europe

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.