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GSIT vs III

GSIT
GSI Technology, Inc.
BEARISH
Price
$5.60
Market Cap
$202.6M
Sector
Technology
AI Confidence
85%
III
Information Services Group, Inc.
BEARISH
Price
$3.94
Market Cap
$188.7M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
GSIT
--
III
20.74
Forward P/E
GSIT
-10.18
III
9.27
P/B Ratio
GSIT
2.42
III
1.99
P/S Ratio
GSIT
8.21
III
0.77
EV/EBITDA
GSIT
-9.85
III
10.29

Profitability

Gross Margin
GSIT
54.6%
III
43.07%
Operating Margin
GSIT
-113.66%
III
8.28%
Profit Margin
GSIT
-43.15%
III
3.82%
ROE
GSIT
-18.76%
III
9.78%
ROA
GSIT
-13.07%
III
5.35%

Growth

Revenue Growth
GSIT
12.2%
III
5.9%
Earnings Growth
GSIT
--
III
-12.2%

Financial Health

Debt/Equity
GSIT
0.1
III
0.74
Current Ratio
GSIT
10.42
III
2.34
Quick Ratio
GSIT
9.67
III
2.19

Dividends

Dividend Yield
GSIT
--
III
4.57%
Payout Ratio
GSIT
0.0%
III
94.74%

AI Verdict

GSIT BEARISH

GSIT presents a paradoxical financial profile: an exceptionally strong balance sheet paired with severe operational inefficiency. While the Piotroski F-Score of 4/9 indicates stable health and the current ratio of 10.42 shows massive liquidity, the company suffers from a -113.66% operating margin and a high Price/Sales ratio of 8.21. The combination of heavy insider selling by the CEO and officers, alongside a recent 34.9% monthly price collapse, suggests a lack of confidence in near-term profitability. Despite modest revenue growth, the lack of a positive Graham Number or intrinsic value baseline makes the current valuation speculative.

Strengths
Extremely low Debt/Equity ratio (0.10)
Exceptional liquidity with a Current Ratio of 10.42
Strong Gross Margin of 54.60% indicating product value
Risks
Severe negative operating margins (-113.66%)
High valuation relative to sales (P/S 8.21) for a non-profitable firm
Aggressive insider selling totaling $3.93M
III BEARISH

III presents a stable financial health profile with a Piotroski F-Score of 6/9, but is fundamentally undermined by poor valuation and negative momentum. The stock trades at a significant premium to both its Graham Number ($2.91) and Intrinsic Value ($1.33), while exhibiting a bearish technical trend (0/100). Critical concerns include a nearly unsustainable dividend payout ratio of 94.74% and aggressive insider selling by the CEO and major shareholders. Despite a low PEG ratio and optimistic analyst targets, the combination of declining earnings growth and insider divestment suggests limited upside.

Strengths
Stable financial health (Piotroski F-Score 6/9)
Strong liquidity with a Current Ratio of 2.34
Low Price-to-Sales ratio (0.77) suggesting revenue is not overvalued
Risks
Unsustainable dividend payout ratio (94.74%) posing a high risk of dividend cuts
Negative earnings growth (YoY -12.20%, Q/Q -14.10%)
Heavy insider selling, including the CEO and 10% owners

Compare Another Pair

GSIT vs III: Head-to-Head Comparison

This page compares GSI Technology, Inc. (GSIT) and Information Services Group, Inc. (III) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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