SPAR Group (NASDAQ:SGRP – Get Free Report) and SPS Commerce (NASDAQ:SPSC – Get Free Report) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.
Insider and Institutional Ownership
9.6% of SPAR Group shares are held by institutional investors. Comparatively, 99.0% of SPS Commerce shares are held by institutional investors. 50.9% of SPAR Group shares are held by company insiders. Comparatively, 1.0% of SPS Commerce shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations for SPAR Group and SPS Commerce, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SPAR Group | 1 | 0 | 0 | 0 | 1.00 |
| SPS Commerce | 0 | 6 | 5 | 0 | 2.45 |
Earnings and Valuation
This table compares SPAR Group and SPS Commerce”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SPAR Group | $163.63 million | 0.15 | -$3.15 million | $0.51 | 2.00 |
| SPS Commerce | $703.54 million | 5.71 | $77.05 million | $2.18 | 48.59 |
SPS Commerce has higher revenue and earnings than SPAR Group. SPAR Group is trading at a lower price-to-earnings ratio than SPS Commerce, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
SPAR Group has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
Profitability
This table compares SPAR Group and SPS Commerce’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SPAR Group | -3.78% | -18.99% | -7.40% |
| SPS Commerce | 11.79% | 12.10% | 10.08% |
Summary
SPS Commerce beats SPAR Group on 13 of the 14 factors compared between the two stocks.
About SPAR Group
SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.
About SPS Commerce
SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
Receive News & Ratings for SPAR Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SPAR Group and related companies with MarketBeat.com's FREE daily email newsletter.
