Castlight Health (NYSE:CSLT) vs. Fang (NYSE:SFUN) Financial Analysis

Castlight Health (NYSE:CSLT) and Fang (NYSE:SFUN) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares Castlight Health and Fang’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Castlight Health -19.68% -9.28% -6.87%
Fang -20.22% 6.08% 2.06%

Valuation & Earnings

This table compares Castlight Health and Fang’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Castlight Health $156.40 million 1.39 -$39.71 million ($0.16) -9.38
Fang $303.02 million 0.48 -$114.91 million $0.50 3.30

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Castlight Health and Fang, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Castlight Health 0 1 2 0 2.67
Fang 2 1 0 0 1.33

Castlight Health presently has a consensus target price of $5.00, indicating a potential upside of 233.33%. Fang has a consensus target price of $11.18, indicating a potential upside of 577.78%. Given Fang’s higher possible upside, analysts plainly believe Fang is more favorable than Castlight Health.

Risk & Volatility

Castlight Health has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Fang has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Institutional & Insider Ownership

53.4% of Castlight Health shares are owned by institutional investors. 17.4% of Castlight Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Castlight Health beats Fang on 8 of the 14 factors compared between the two stocks.

Castlight Health Company Profile

Castlight Health, Inc. provides a software-as-a-service platform used for health benefits navigation for employees in the United States. Its platform matches employees to the resources their employers make available to them; managing a condition; and assists them to manage their benefits. The company also offers implementation, user and customer support, and marketplace services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government. The company was formerly known as Ventana Health Services and changed its name to Castlight Health, Inc. in April 2010. Castlight Health, Inc. was founded in 2008 and is headquartered in San Francisco, California.

Fang Company Profile

Fang Holdings Limited operates a real estate Internet portal in the People's Republic of China. The company's portal offers listing, marketing, e-commerce, financial, and other value-added services. It supports active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors. The company was formerly known as SouFun Holdings Limited and changed its name to Fang Holdings Limited in September 2016. Fang Holdings Limited was founded in 1999 and is headquartered in Beijing, China.

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