Analyzing BILL (NYSE:BILL) and GSE Systems (NASDAQ:GVP)

BILL (NYSE:BILL) and GSE Systems (NASDAQ:GVP) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Profitability

This table compares BILL and GSE Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BILL	0.59%	1.54%	0.67%
GSE Systems	-15.90%	-160.01%	-32.73%

Insider and Institutional Ownership

98.0% of BILL shares are held by institutional investors. Comparatively, 21.8% of GSE Systems shares are held by institutional investors. 4.2% of BILL shares are held by company insiders. Comparatively, 8.2% of GSE Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

BILL has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, GSE Systems has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for BILL and GSE Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BILL	1	8	10	0	2.47
GSE Systems	0	0	1	0	3.00

BILL currently has a consensus target price of $74.65, suggesting a potential downside of 11.86%. GSE Systems has a consensus target price of $13.00, suggesting a potential upside of 183.22%. Given GSE Systems’ stronger consensus rating and higher probable upside, analysts clearly believe GSE Systems is more favorable than BILL.

Earnings and Valuation

This table compares BILL and GSE Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BILL	$1.29 billion	6.79	-$28.88 million	($0.33)	-256.64
GSE Systems	$45.04 million	0.35	-$8.72 million	($2.53)	-1.81

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

Summary

BILL beats GSE Systems on 9 of the 14 factors compared between the two stocks.

About BILL

BILL Holdings, Inc. provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. In addition, the company's artificial intelligence enabled software provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.

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.