Climb Global Solutions (NASDAQ:CLMB – Get Rating) and ePlus (NASDAQ:PLUS – Get Rating) 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, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Risk and Volatility
Climb Global Solutions has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, ePlus has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Get Climb Global Solutions alerts:Profitability
This table compares Climb Global Solutions and ePlus' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Climb Global Solutions | 3.84% | 21.57% | 6.09% |
| ePlus | 5.35% | 15.14% | 8.04% |
Valuation and Earnings
This table compares Climb Global Solutions and ePlus' gross revenue, earnings per share (EPS) and valuation.| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Climb Global Solutions | $282.58 million | 0.50 | $9.20 million | $2.52 | 12.56 |
| ePlus | $1.82 billion | 0.64 | $105.60 million | $3.80 | 11.37 |
ePlus has higher revenue and earnings than Climb Global Solutions. ePlus is trading at a lower price-to-earnings ratio than Climb Global Solutions, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
42.9% of Climb Global Solutions shares are owned by institutional investors. Comparatively, 94.6% of ePlus shares are owned by institutional investors. 8.4% of Climb Global Solutions shares are owned by company insiders. Comparatively, 2.3% of ePlus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Climb Global Solutions and ePlus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Climb Global Solutions | 0 | 0 | 0 | 0 | N/A |
| ePlus | 0 | 0 | 0 | 0 | N/A |
Summary
ePlus beats Climb Global Solutions on 8 of the 11 factors compared between the two stocks.
About Climb Global Solutions
(Get Rating)
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 and hardware to corporate and value added resellers, consultants, and systems integrators under the names Climb Channel Solutions and Sigma Software Distribution; and software, hardware, and services under the names TechXtend and 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. Climb Global Solutions Inc. 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. It provides IT distribution and solutions for companies in the security, data management, cloud, connectivity, storage and HCI, virtualization, and software and ALM industries. 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 ePlus
(Get Rating)
ePlus inc., together with its subsidiaries, provides information technology (IT) solutions that enable organizations to optimize their IT environment and supply chain processes in the United States and internationally. It operates in two segments, Technology and Financing. The Technology segment offers hardware, perpetual and subscription software, maintenance, software assurance, and internally provided and outsourced services; and professional and managed services, including managed, professional, security solutions, cloud consulting and hosting, staff augmentation, server and desktop support, and project management services. The Financing segment engages in financing arrangements, such as sales-type and operating leases; loans and consumption-based financing arrangements; and underwriting, management, and disposal of IT equipment and assets. Its financing operations comprise sales, pricing, credit, contracts, accounting, risk management, and asset management. This segment primarily finances IT, communication-related, and medical equipment; and industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment directly, as well as through vendors. ePlus inc. serves commercial entities, state and local governments, government contractors, and educational institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus inc. was founded in 1990 and is headquartered in Herndon, Virginia.
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