Head-To-Head Comparison: China Digital TV (OTCMKTS:STVVY) and GSE Systems (NASDAQ:GVP)

China Digital TV (OTCMKTS:STVVY) and GSE Systems (NASDAQ:GVP) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

21.8% of GSE Systems shares are held by institutional investors. 8.2% of GSE Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares China Digital TV and GSE Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Digital TV	N/A	N/A	N/A
GSE Systems	-17.08%	-137.64%	-34.22%

Volatility and Risk

China Digital TV has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, GSE Systems has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Earnings & Valuation

This table compares China Digital TV and GSE Systems’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Digital TV	$6.20 million	0.10	-$3.06 million	N/A	N/A
GSE Systems	$45.04 million	0.25	-$8.72 million	($2.87)	-1.20

China Digital TV has higher earnings, but lower revenue than GSE Systems.

Analyst Recommendations

This is a breakdown of current ratings and price targets for China Digital TV and GSE Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Digital TV	0	0	0	0	N/A
GSE Systems	0	0	1	0	3.00

GSE Systems has a consensus price target of $13.00, suggesting a potential upside of 289.22%. Given GSE Systems’ higher probable upside, analysts plainly believe GSE Systems is more favorable than China Digital TV.

Summary

GSE Systems beats China Digital TV on 7 of the 11 factors compared between the two stocks.

About China Digital TV

China Digital TV Holding Co., Ltd., through its subsidiaries, provides cable television (TV) value added services, which enables cable TV and Internet protocol television network operators to offer various TV content services in the People's Republic of China. The company offers cloud platforms with embedded gaming and other applications that provide cloud computing technology-based digital video delivery solutions to television and telecommunication network operators. Its cloud platforms enable television and telecommunication network operators to use their two-way set-top boxes to run various value-added applications, such as video games, 3D games, educational applications, and business service applications, which are accessible on smart phones, tablet computers, personal computers, Internet TVs, and other devices. The company also provides 1+ Cloud Gaming cloud platform that offers 2D games, 3D games, motion-sensing games, and customized games; and interactive education application on the cloud platform primarily through cloud television programs, including nursery rhymes, early education, English language education, and online drawing for children of age 2 to 10. In addition, it offers cloud virtual reality (VR) services that enables users to access cloud server and use various VR applications, such as games, education, and media players; and technical support and services. Further, the company provides cloud platform system integration services, such as cloud computing software, hardware, and post-contract customer support services; and system development services comprising the development of customized cloud-based software applications. China Digital TV Holding Co., Ltd. was founded in 2004 and is headquartered in Beijing, the People's Republic of China.

About GSE Systems

GSE Systems, Inc. engages in the provision of professional and technical engineering services, staffing services, and simulation software to clients in the power and process industries in the United States, Asia, Europe, and internationally. It operates in two segments: Engineering and Workforce Solutions. The Engineering segment provides various technical engineering services for ASME programs; and simulation software and services, including operator training systems for the nuclear, fossil fuel power generation, and process industries. The segment also offers in-service testing for engineering programs focused on ASME OM code; in-service inspection for specialty engineering including ASME Section XI; software solutions; mechanical and civil/structural design; electrical, instrumentation, and controls design; digital controls/cyber security; and fire protection solutions for nuclear power plant design modifications. The Workforce Solutions segment supports project lifecycles and provides technical talent and specialty services comprising professional and training services, procedure writing services, and flexible staffing and talent acquisition services for energy, engineering, construction, government, infrastructure, environmental, and manufacturing industries, which include reactor operations instructors, procedure writers, project managers, engineers, work management specialists, planners, and training material developers. The company markets its products and services through a network of direct sales staff, agents and representatives, and strategic alliance partners. GSE Systems, Inc. was founded in 1971 and is headquartered in Columbia, Maryland.