Analyzing Healthcare Services Group (NASDAQ:HCSG) & YY Group (NASDAQ:YYGH)

Healthcare Services Group (NASDAQ:HCSG) and YY Group (NASDAQ:YYGH) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Institutional and Insider Ownership

98.0% of Healthcare Services Group shares are owned by institutional investors. 2.6% of Healthcare Services Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Healthcare Services Group and YY Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Services Group	0	4	3	0	2.43
YY Group	1	0	0	0	1.00

Healthcare Services Group currently has a consensus price target of $19.40, indicating a potential upside of 3.69%. Given Healthcare Services Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Healthcare Services Group is more favorable than YY Group.

Profitability

This table compares Healthcare Services Group and YY Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Services Group	2.20%	12.23%	7.52%
YY Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Healthcare Services Group and YY Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Services Group	$1.72 billion	0.77	$39.47 million	$0.54	34.65
YY Group	$41.10 million	0.37	-$4.84 million	N/A	N/A

Healthcare Services Group has higher revenue and earnings than YY Group.

Risk and Volatility

Healthcare Services Group has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, YY Group has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500.

Summary

Healthcare Services Group beats YY Group on 11 of the 12 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 YY Group

YY Group Holding Limited, a data and technology driven company, provides manpower outsourcing and cleaning services in Singapore and Malaysia. Its cleaning services include commercial cleaning for offices and schools; hospitality cleaning for hotels and shopping centers; industrial cleaning, facade cleaning, disinfection, and stewarding services for meetings, incentives, conferences, and exhibitions, as well as banquets; and pest control services. The company also offers cleaning robots and machines to enhance cleaning performance by deploying them at designated premises. In addition, it provides YY Smart iClean App, which is a smart toilet central management platform. Further, the company offers manpower contracting services; employment agencies; general cleaning services; manpower outsourcing with information technology solution; management consulting; and employment placement and recruitment services. YY Group Holding Limited was founded in 2010 and is headquartered in Singapore.