BG Staffing (NASDAQ: BGSF) and Barrett Business Services (NASDAQ:BBSI) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for BG Staffing and Barrett Business Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BG Staffing 0 0 0 0 N/A
Barrett Business Services 0 0 0 0 N/A

Earnings & Valuation

This table compares BG Staffing and Barrett Business Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BG Staffing $257.30 million 0.55 $22.46 million N/A N/A
Barrett Business Services $881.77 million 0.43 $29.94 million $2.38 21.68

Barrett Business Services has higher revenue and earnings than BG Staffing.

Dividends

Barrett Business Services pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. BG Staffing does not pay a dividend. Barrett Business Services pays out 42.0% of its earnings in the form of a dividend.

Profitability

This table compares BG Staffing and Barrett Business Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BG Staffing 3.32% 22.69% 9.91%
Barrett Business Services 2.06% 33.55% 3.62%

Institutional & Insider Ownership

73.6% of Barrett Business Services shares are held by institutional investors. 6.0% of Barrett Business Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Barrett Business Services beats BG Staffing on 7 of the 11 factors compared between the two stocks.

About BG Staffing

BG Staffing, Inc. (BG Staffing) is a provider of temporary staffing services. The Company provides temporary workers to a range of customers that are seeking to match their workforce requirements to their business needs. Its customers operate across a diverse set of industries. The Company’s operations are organized into three segments: Commercial, Multifamily and Professional. The Company’s temporary staffing services consist of on-demand or short-term staffing assignments, contract staffing, and on-site management administration. Short-term staffing services assist employers in dealing with employee demands caused by such factors as seasonality, fluctuations in customer demand, vacations, illnesses, parental leave, and special projects. The Company’s contract staffing services place temporary employees with customers for time-periods of more than three months or for an indefinite time period.

About Barrett Business Services

Barrett Business Services, Inc. (BBSI) is a provider of business management solutions for small and mid-sized companies. The Company has developed a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. BBSI’s purpose is to advocate for business owners, particularly in the small and mid-sized business segment. The Company offers two categories of services: Professional Employer Services (PEO) and Staffing. Its staffing services include on-demand or short-term staffing assignments, contract staffing, direct placement, and long-term or indefinite-term on-site management. As of December 31, 2016, the Company operated in 20 states and the District of Columbia through a network of 57 branch locations in California, Oregon, Utah, Washington, Idaho, Arizona, Colorado, Maryland, North Carolina, Delaware, Nevada, Pennsylvania and Virginia.

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