Critical Review: Labor Smart (LTNC) vs. Its Peers

Insider & Institutional Ownership

57.6% of shares of all “Professional Services” companies are held by institutional investors. 8.1% of Labor Smart shares are held by company insiders. Comparatively, 17.0% of shares of all “Professional Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Labor Smart and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Labor Smart	N/A	N/A	-0.01
Labor Smart Competitors	$3.29 billion	$227.10 million	30.23

Labor Smart’s competitors have higher revenue and earnings than Labor Smart. Labor Smart is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Labor Smart has a beta of -0.47, indicating that its share price is 147% less volatile than the S&P 500. Comparatively, Labor Smart’s competitors have a beta of 0.95, indicating that their average share price is 5% less volatile than the S&P 500.

Profitability

This table compares Labor Smart and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Labor Smart	N/A	N/A	N/A
Labor Smart Competitors	-0.63%	17.35%	4.15%

Summary

Labor Smart competitors beat Labor Smart on 7 of the 8 factors compared.

Labor Smart Company Profile

Labor Smart, Inc. engages in providing temporary blue-collar staffing services. It supplies general laborers on demand to the light industries, including manufacturing, logistics, and warehousing, skilled trade’s people and general laborers to commercial construction industries. The company was founded by Christopher Ryan Schadel on May 31, 2011 and is headquartered in Powder Springs, GA.