Black Diamond Group (OTCMKTS:BDIMF – Get Free Report) and BGSF (NYSE:BGSF – Get Free Report) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
Profitability
This table compares Black Diamond Group and BGSF’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Black Diamond Group | 8.23% | 10.76% | 4.79% |
| BGSF | -6.32% | -13.16% | -7.20% |
Risk and Volatility
Black Diamond Group has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, BGSF has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Black Diamond Group | 0 | 0 | 1 | 0 | 3.00 |
| BGSF | 1 | 1 | 1 | 1 | 2.50 |
BGSF has a consensus price target of $9.00, indicating a potential upside of 105.95%. Given BGSF’s higher possible upside, analysts clearly believe BGSF is more favorable than Black Diamond Group.
Insider & Institutional Ownership
37.2% of BGSF shares are owned by institutional investors. 25.2% of Black Diamond Group shares are owned by company insiders. Comparatively, 8.0% of BGSF shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Black Diamond Group and BGSF”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Black Diamond Group | $294.14 million | 2.33 | $18.72 million | $0.41 | 24.51 |
| BGSF | $272.50 million | 0.18 | -$3.34 million | ($1.03) | -4.24 |
Black Diamond Group has higher revenue and earnings than BGSF. BGSF is trading at a lower price-to-earnings ratio than Black Diamond Group, indicating that it is currently the more affordable of the two stocks.
Summary
Black Diamond Group beats BGSF on 11 of the 14 factors compared between the two stocks.
About Black Diamond Group
Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, high security modular buildings, custom manufactured modular facilities, blast resistant structures, SmartSpace interchangeable paneled units, and storage containers. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary rental items, products, and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. It also provides specialized field rentals to oil and gas industries. The company markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. Black Diamond Group Limited was founded in 2003 and is headquartered in Calgary, Canada.
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.
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