Calix (NYSE:CALX) & BILL (NYSE:BILL) Financial Analysis

Calix (NYSE:CALX) and BILL (NYSE:BILL) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Profitability

This table compares Calix and BILL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Calix	3.20%	4.30%	3.52%
BILL	0.01%	2.40%	0.91%

Analyst Recommendations

This is a breakdown of recent ratings for Calix and BILL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calix	0	4	6	0	2.60
BILL	1	9	12	1	2.57

Calix currently has a consensus price target of $67.00, indicating a potential upside of 70.66%. BILL has a consensus price target of $56.80, indicating a potential upside of 57.41%. Given Calix’s stronger consensus rating and higher possible upside, research analysts clearly believe Calix is more favorable than BILL.

Insider & Institutional Ownership

98.1% of Calix shares are owned by institutional investors. Comparatively, 98.0% of BILL shares are owned by institutional investors. 17.4% of Calix shares are owned by company insiders. Comparatively, 13.2% of BILL shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Calix has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, BILL has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Earnings & Valuation

This table compares Calix and BILL”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calix	$1.00 billion	2.50	$17.88 million	$0.48	81.79
BILL	$1.46 billion	2.46	$23.80 million	($0.01)	-3,608.50

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

Summary

Calix beats BILL on 11 of the 15 factors compared between the two stocks.

About Calix

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.

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.