Comparing HireRight (NYSE:HRT) and Reliability (OTCMKTS:RLBY)

Reliability (OTCMKTS:RLBY) and HireRight (NYSE:HRT) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

12.5% of HireRight shares are owned by institutional investors. 10.1% of Reliability shares are owned by company insiders. Comparatively, 13.0% of HireRight shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Reliability and HireRight’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reliability	$25.73 million	0.77	-$740,000.00	N/A	N/A
HireRight	$731.20 million	0.04	-$705,000.00	($0.25)	-40.20

HireRight has higher revenue and earnings than Reliability.

Analyst Recommendations

This is a summary of recent ratings for Reliability and HireRight, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reliability	0	0	0	0	N/A
HireRight	0	5	3	0	2.38

HireRight has a consensus price target of $12.26, indicating a potential upside of 21.96%. Given HireRight’s higher probable upside, analysts clearly believe HireRight is more favorable than Reliability.

Risk and Volatility

Reliability has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, HireRight has a beta of 0.17, meaning that its stock price is 83% less volatile than the S&P 500.

Profitability

This table compares Reliability and HireRight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reliability	-3.01%	-8.28%	-6.28%
HireRight	N/A	N/A	N/A

Summary

HireRight beats Reliability on 9 of the 11 factors compared between the two stocks.

About Reliability

Reliability Incorporated, through its subsidiary, The Maslow Media Group, Inc., provides workforce solutions in the United States and internationally. The Employer of Record segment provides outsourced managed workforce solutions, which includes state employment registration, employee onboarding/offboarding, payroll processing, benefits offerings and administration, workers compensation claim management, employee relations, regulatory compliance, and on-site workforce management services, as well as management of state/county/city mandated employee benefits, such as paid safe and sick leaves, as well as locality mandated training and unemployment claims administration. The Recruiting and Staffing segment operates a network of multimedia and video production workers for media clients, camera crews, and other technical and creative talent. Video and Multimedia Production segment provides multimedia and video production solutions including pre-production conceptualization; project consultation from scriptwriting to site scouting; budget development and management; booking and managing of logistics for field and studio teams; and broadcast HD camera crews and field support, which includes makeup artists, av support, field producers, and full equipment rental. This segment also offers post-production facilities and freelance support including non-linear editors, graphic artists, narrators, and actors; animation and graphic design development, such as whiteboard animation; live transmission services from satellite to streaming; and management of staffed client studios for corporate, government and broadcast clients. Direct Hire segment provides direct placement requests by MMG clients for various posts, including administrative, media, and IT professionals. It serves media, banking, medical devices, pharmaceuticals, telecommunications, energy, healthcare, and education industries. Reliability Incorporated was founded in 1988 and is headquartered in Clarksburg, Maryland.

About HireRight

HireRight Holdings Corporation provides technology-driven workforce risk management and compliance solutions worldwide. The company offers background screening, verification, identification, monitoring, and drug and health screening services for customers. It provides its services through software and data platform that integrates into its customers' human capital management systems enabling workflows for workforce hiring, onboarding, and monitoring. HireRight Holdings Corporation was incorporated in 1990 and is based in Nashville, Tennessee.