BGSF (NYSE:BGSF) versus Wolters Kluwer (OTCMKTS:WTKWY) Financial Analysis

Wolters Kluwer (OTCMKTS:WTKWY) and BGSF (NYSE:BGSF) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Insider & Institutional Ownership

0.0% of Wolters Kluwer shares are owned by institutional investors. Comparatively, 37.2% of BGSF shares are owned by institutional investors. 8.0% of BGSF shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Wolters Kluwer and BGSF, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wolters Kluwer	0	0	1	1	3.50
BGSF	0	1	1	1	3.00

BGSF has a consensus target price of $9.00, indicating a potential upside of 91.73%. Given BGSF’s higher possible upside, analysts clearly believe BGSF is more favorable than Wolters Kluwer.

Valuation and Earnings

This table compares Wolters Kluwer 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
Wolters Kluwer	$6.40 billion	4.89	$1.17 billion	N/A	N/A
BGSF	$272.50 million	0.19	-$3.34 million	($0.58)	-8.09

Wolters Kluwer has higher revenue and earnings than BGSF.

Profitability

This table compares Wolters Kluwer and BGSF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wolters Kluwer	N/A	N/A	N/A
BGSF	-2.81%	-9.06%	-4.84%

Risk and Volatility

Wolters Kluwer has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, BGSF has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Summary

Wolters Kluwer beats BGSF on 7 of the 11 factors compared between the two stocks.

About Wolters Kluwer

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally. The company operates through Health; Tax & Accounting; Financial & Corporate Compliance; Legal & Regulatory; and Corporate Performance & ESG segments. The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare. It serves hospitals, healthcare organizations, clinicians, students, schools, libraries, payers, life sciences, and pharmacies. The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes. It serves accounting firms, tax and auditing departments, businesses of all sizes, government agencies, libraries, and universities. The Financial & Corporate Compliance segment offers solutions for legal entity compliance and banking product compliance. It serves corporations, small businesses, law firms, banks, non-bank lenders, credit unions, insurers, and securities firms. The Legal & Regulatory segment provides information, insights, and workflow solutions for changing regulatory obligations, managing risk, and increasing efficiency. It provides solutions for legal and compliance professionals in law firms, corporate legal departments, universities, and government organizations. The Corporate Performance & ESG segment offers enterprise software to drive financial and sustainability performance and manage risks, meet reporting requirements, improve safety and productivity, and reduce environmental impact. It serves corporate finance, audit, planning, risk, environmental, health and safety, operational risk management, and sustainability professionals in corporations, banks, and governments. Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.

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.