The Providence Service Corporation (NASDAQ: PRSC) and The Joint Corp. (NASDAQ:JYNT) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for The Providence Service Corporation and The Joint Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Providence Service Corporation 0 1 1 0 2.50
The Joint Corp. 0 0 4 0 3.00

The Providence Service Corporation presently has a consensus price target of $67.00, indicating a potential upside of 17.94%. The Joint Corp. has a consensus price target of $6.15, indicating a potential upside of 11.01%. Given The Providence Service Corporation’s higher probable upside, equities analysts plainly believe The Providence Service Corporation is more favorable than The Joint Corp..

Valuation and Earnings

This table compares The Providence Service Corporation and The Joint Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
The Providence Service Corporation $1.58 billion 0.48 $91.92 million $5.58 10.18
The Joint Corp. $20.52 million 3.65 -$15.17 million ($0.69) -8.03

The Providence Service Corporation has higher revenue and earnings than The Joint Corp.. The Joint Corp. is trading at a lower price-to-earnings ratio than The Providence Service Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

95.9% of The Providence Service Corporation shares are owned by institutional investors. Comparatively, 44.6% of The Joint Corp. shares are owned by institutional investors. 18.9% of The Providence Service Corporation shares are owned by insiders. Comparatively, 6.1% of The Joint Corp. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

The Providence Service Corporation has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, The Joint Corp. has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares The Providence Service Corporation and The Joint Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Providence Service Corporation 4.91% 6.29% 2.63%
The Joint Corp. -36.74% -98.28% -32.61%

Summary

The Providence Service Corporation beats The Joint Corp. on 9 of the 13 factors compared between the two stocks.

The Providence Service Corporation Company Profile

The Providence Service Corporation (Providence) is a holding company. The Company, through its subsidiaries, is engaged in the provision of healthcare and workforce development services for public and private sector entities. The Company’s segments include Non-Emergency Transportation Services (NET Services), Workforce Development Services (WD Services) and Matrix Investment. NET Services segment includes nationwide provider of non-emergency medical transportation programs for state governments and managed care organizations. WD Services segment is a global provider of employment preparation and placement and legal offender rehabilitation services to eligible participants of government sponsored programs. Matrix Investment segment includes minority interest in nationwide provider of in-home care optimization and management solutions, including comprehensive health assessments (CHAs), to members of managed care organizations, accounted for as an equity method investment.

The Joint Corp. Company Profile

The Joint Corp. develops, owns, operates, supports and manages chiropractic clinics through direct ownership, management arrangements, franchising and the sale of regional developer rights throughout the United States. The Company is franchisor and operator of chiropractic clinics. The Company offers its patients the opportunity to visit its clinics without an appointment and receive prompt attention. The Company has approximately 310 franchised, company-owned, or managed clinics in operation in over 30 states. In addition to its approximately 310 operating clinics, the Company has granted franchises either directly or through its regional developers for an additional over 170 clinics. The Company offers a range of membership and wellness packages. Each patient’s records are digitally updated for ready retrieval in its data storage system by its chiropractors in compliance with various applicable medical records security and privacy regulations.

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