Contrasting Cass Information Systems (NASDAQ:CASS) and Generation Hemp (OTCMKTS:GENH)

Cass Information Systems (NASDAQ:CASSGet Rating) and Generation Hemp (OTCMKTS:GENHGet Rating) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Valuation & Earnings

This table compares Cass Information Systems and Generation Hemp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cass Information Systems $182.48 million 3.62 $34.90 million $2.53 19.10
Generation Hemp $680,000.00 49.67 -$9.82 million N/A N/A

Cass Information Systems has higher revenue and earnings than Generation Hemp.

Profitability

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

Net Margins Return on Equity Return on Assets
Cass Information Systems 19.13% 17.04% 1.40%
Generation Hemp -674.14% -15,656.36% -195.12%

Insider and Institutional Ownership

56.2% of Cass Information Systems shares are held by institutional investors. 2.8% of Cass Information Systems shares are held by company insiders. Comparatively, 60.9% of Generation Hemp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Cass Information Systems has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Generation Hemp has a beta of -0.26, indicating that its share price is 126% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Cass Information Systems and Generation Hemp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cass Information Systems 0 1 0 0 2.00
Generation Hemp 0 0 0 0 N/A

Cass Information Systems currently has a consensus price target of $45.00, indicating a potential downside of 6.87%. Given Cass Information Systems’ higher probable upside, analysts plainly believe Cass Information Systems is more favorable than Generation Hemp.

Summary

Cass Information Systems beats Generation Hemp on 8 of the 10 factors compared between the two stocks.

About Cass Information Systems

(Get Rating)

Cass Information Systems, Inc. provides payment and information processing services to manufacturing, distribution, and retail enterprises in the United States. It operates through two segments, Information Services and Banking Services. The company's services include freight invoice rating, payment processing, auditing, and the generation of accounting and transportation information. It also processes and pays facility-related invoices, such as electricity, gas, waste, and telecommunications expenses; and provides telecom expense management solutions. In addition, the company, through its banking subsidiary, Cass Commercial Bank, provides a range of banking products and services, such as checking, savings, and time deposit accounts; commercial, industrial, and real estate loans; and cash management services to privately-owned businesses 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 Fenton, Missouri and 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 St. Louis, Missouri.

About Generation Hemp

(Get Rating)

Generation Hemp, Inc. provide post-harvest and midstream services to growers by drying, processing, cleaning, and stripping harvested hemp directly from the field and wetbaled. It also owns and leases industrial warehouse in Denver. Generation Hemp, Inc. is based in Dallas, Texas.

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