DLH (NASDAQ:DLHC – Get Free Report) and Upwork (NASDAQ:UPWK – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Earnings and Valuation
This table compares DLH and Upwork”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DLH | $344.50 million | 0.17 | $1.36 million | ($1.48) | -2.71 |
| Upwork | $787.78 million | 1.37 | $115.43 million | $0.77 | 11.22 |
Volatility and Risk
DLH has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Upwork has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Profitability
This table compares DLH and Upwork’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DLH | -8.51% | -10.42% | -4.04% |
| Upwork | 12.94% | 16.70% | 7.94% |
Insider & Institutional Ownership
67.2% of DLH shares are owned by institutional investors. Comparatively, 77.7% of Upwork shares are owned by institutional investors. 12.8% of DLH shares are owned by insiders. Comparatively, 4.9% of Upwork shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for DLH and Upwork, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DLH | 1 | 1 | 1 | 0 | 2.00 |
| Upwork | 1 | 9 | 3 | 0 | 2.15 |
Upwork has a consensus target price of $13.05, indicating a potential upside of 51.04%. Given Upwork’s stronger consensus rating and higher possible upside, analysts plainly believe Upwork is more favorable than DLH.
Summary
Upwork beats DLH on 12 of the 14 factors compared between the two stocks.
About DLH
DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. It offers digital transformation and cyber security solutions, including artificial intelligence and machine learning, cloud enablement, cybersecurity ecosystem, big data analytics, and modeling and simulation to the National Institutes of Health (NIH), the Defense Health Agency, Tele-medicine and Advanced Technology Research Center, and US Navy Naval Information Warfare Center (NIWC). The company also provides science research and development services and solutions, such as data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions, including NIH and the Center for Disease Control and Prevention, as well as the Military Health System. In addition, it offers system engineering and integration solutions in the areas of pharmaceutical delivery logistics, fire protection engineering, biomedical equipment, and technology engineering on behalf of the Department of Veterans Affairs, NIWC, Health and Human Services, and other federal customers. The company also provides business process management services under the trademarks, e-PRAT and SPOT-m, as well as the registered trademark, Infinibyte for cloud-based solutions. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.
About Upwork
Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Payroll and Upwork Enterprise, as well as managed and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.
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