Cass Information Systems (NASDAQ:CASS) versus ITEX (OTCMKTS:ITEX) Head to Head Contrast

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

Analyst Ratings

This is a summary of current ratings and price targets for Cass Information Systems and ITEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cass Information Systems	0	0	1	0	3.00
ITEX	0	0	0	0	N/A

Cass Information Systems currently has a consensus target price of $51.00, indicating a potential upside of 7.53%. Given Cass Information Systems’ higher probable upside, research analysts plainly believe Cass Information Systems is more favorable than ITEX.

Valuation & Earnings

This table compares Cass Information Systems and ITEX’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	3.27	$30.06 million	$2.18	21.76
ITEX	N/A	N/A	N/A	N/A	N/A

Cass Information Systems has higher revenue and earnings than ITEX.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cass Information Systems	15.22%	13.84%	1.22%
ITEX	N/A	N/A	N/A

Risk and Volatility

Cass Information Systems has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, ITEX has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Dividends

Cass Information Systems pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. ITEX pays an annual dividend of $1.00 per share and has a dividend yield of 22.3%. Cass Information Systems pays out 55.0% of its earnings in the form of a dividend. Cass Information Systems has increased its dividend for 22 consecutive years.

Insider and Institutional Ownership

59.1% of Cass Information Systems shares are owned by institutional investors. 2.8% of Cass Information Systems shares are owned by insiders. Comparatively, 32.0% of ITEX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Cass Information Systems beats ITEX on 9 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 ITEX

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company's marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.