Sodexo (OTCMKTS:SDXAY) and PHI Group (OTCMKTS:PHIL) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Dividends

Sodexo pays an annual dividend of $0.55 per share and has a dividend yield of 2.6%. PHI Group does not pay a dividend. Sodexo pays out 9.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.1% of Sodexo shares are held by institutional investors. 1.0% of Sodexo shares are held by company insiders. Comparatively, 32.0% of PHI Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Sodexo and PHI Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sodexo N/A N/A N/A
PHI Group -120.94% -65.87% -10.06%

Valuation and Earnings

This table compares Sodexo and PHI Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sodexo $23.72 billion 0.66 $756.83 million $5.55 3.85
PHI Group $1.67 million 0.42 -$2.02 million N/A N/A

Sodexo has higher revenue and earnings than PHI Group.

Analyst Ratings

This is a summary of recent ratings and target prices for Sodexo and PHI Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sodexo 1 1 0 0 1.50
PHI Group 0 0 0 0 N/A

Volatility & Risk

Sodexo has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, PHI Group has a beta of 6.24, indicating that its stock price is 524% more volatile than the S&P 500.

Summary

Sodexo beats PHI Group on 8 of the 11 factors compared between the two stocks.

Sodexo Company Profile

Sodexo S.A. develops, manages, and delivers on-site services, benefits and rewards services, and personal and home services worldwide. The company offers various on-site services, including construction, reception, medical equipment sterilization, cleaning, food, event management, and prisoner rehabilitation services to corporates, governments, healthcare and seniors, universities, schools, energy and resources, and sports and leisure customers. It also provides benefits and rewards services, which comprise employee benefits, incentive and recognition programs, expense management, public benefits, and gift cards and boxes. In addition, the company offers concierge services; and in-home care services comprising assistance with eating, bathing, walking, and housecleaning, as well as helps in maintaining social contact and relationships. Further, it provides grocery shopping, going to work, and a doctor's appointment services; and operates child day-care centers. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.

PHI Group Company Profile

PHI Group Inc., through its subsidiary, PHI Capital Holdings, Inc., provides merger and acquisition advisory, consulting, project financing, and capital market services to clients in North America and Asia. The company was formerly known as Providential Holdings, Inc. and changed its name to PHI Group, Inc. in April 2009. PHI Group Inc. was founded in 1982 and is headquartered in Las Vegas, Nevada.

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