Galaxy Payroll Group (NASDAQ:GLXG) & BGSF (NYSE:BGSF) Critical Survey

Galaxy Payroll Group (NASDAQ:GLXG) and BGSF (NYSE:BGSF) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings for Galaxy Payroll Group and BGSF, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Payroll Group	1	0	0	0	1.00
BGSF	1	0	0	0	1.00

Volatility and Risk

Galaxy Payroll Group has a beta of -2.68, meaning that its share price is 368% less volatile than the S&P 500. Comparatively, BGSF has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares Galaxy Payroll Group and BGSF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galaxy Payroll Group	N/A	N/A	N/A
BGSF	-8.99%	-13.69%	-10.60%

Institutional & Insider Ownership

37.2% of BGSF shares are held by institutional investors. 8.0% of BGSF shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Galaxy Payroll Group and BGSF”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Payroll Group	$27.74 million	0.23	-$3.51 million	N/A	N/A
BGSF	$93.31 million	0.63	-$11.43 million	($0.74)	-7.39

Galaxy Payroll Group has higher earnings, but lower revenue than BGSF.

Summary

BGSF beats Galaxy Payroll Group on 5 of the 9 factors compared between the two stocks.

About Galaxy Payroll Group

Galaxy Payroll Group Limited, through its subsidiaries, provides payroll outsourcing, employment, and consultancy and market research services. It has operations in Hong Kong, Macau, the People’s Republic of China, Taiwan, Japan, Australia, Thailand, Malaysia, Vietnam, India, Indonesia, and the Philippines. The company was founded in 2013 and is based in Sheung Wan, Hong Kong.

About BGSF

BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.