Healthcare Services Group (NASDAQ:HCSG – Get Free Report) and Safe and Green Development (NASDAQ:RENX – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Profitability
This table compares Healthcare Services Group and Safe and Green Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Healthcare Services Group | 5.58% | 20.22% | 12.79% |
| Safe and Green Development | -169.20% | -550.70% | -54.41% |
Institutional and Insider Ownership
98.0% of Healthcare Services Group shares are held by institutional investors. Comparatively, 2.6% of Safe and Green Development shares are held by institutional investors. 2.9% of Healthcare Services Group shares are held by insiders. Comparatively, 16.9% of Safe and Green Development shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Healthcare Services Group and Safe and Green Development”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Healthcare Services Group | $1.84 billion | 0.95 | $59.06 million | $1.49 | 16.98 |
| Safe and Green Development | $15.01 million | 0.28 | -$15.96 million | ($27.62) | -0.04 |
Healthcare Services Group has higher revenue and earnings than Safe and Green Development. Safe and Green Development is trading at a lower price-to-earnings ratio than Healthcare Services Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Healthcare Services Group and Safe and Green Development, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Services Group | 0 | 4 | 6 | 0 | 2.60 |
| Safe and Green Development | 1 | 1 | 0 | 0 | 1.50 |
Healthcare Services Group currently has a consensus target price of $26.67, suggesting a potential upside of 5.40%. Given Healthcare Services Group’s stronger consensus rating and higher possible upside, analysts clearly believe Healthcare Services Group is more favorable than Safe and Green Development.
Risk & Volatility
Healthcare Services Group has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Safe and Green Development has a beta of 3.85, indicating that its share price is 285% more volatile than the S&P 500.
Summary
Healthcare Services Group beats Safe and Green Development on 12 of the 14 factors compared between the two stocks.
About Healthcare Services Group
Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.
About Safe and Green Development
Safe and Green Development Corporation operates as a real estate development company. It focuses on building single and multifamily projects. The company was formerly known as SGB Development Corp. and changed its name to Safe and Green Development Corporation in December 2022. The company was incorporated in 2021 and is based in Miami, Florida. Safe and Green Development Corporation is a subsidiary of Safe & Green Holdings Corp.
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