Contrasting BILL (NYSE:BILL) and Calix (NYSE:CALX)

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

Institutional & Insider Ownership

98.0% of BILL shares are owned by institutional investors. Comparatively, 98.1% of Calix shares are owned by institutional investors. 13.2% of BILL shares are owned by company insiders. Comparatively, 17.4% of Calix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for BILL and Calix, as reported by MarketBeat.

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

BILL presently has a consensus price target of $56.80, indicating a potential upside of 53.08%. Calix has a consensus price target of $67.00, indicating a potential upside of 68.40%. Given Calix’s stronger consensus rating and higher possible upside, analysts plainly believe Calix is more favorable than BILL.

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BILL	$1.60 billion	2.31	$23.80 million	($0.01)	-3,710.50
Calix	$1.00 billion	2.54	$17.88 million	$0.48	82.89

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.

Volatility and Risk

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

Summary

Calix beats BILL on 11 of the 15 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 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.