Healthcare Services Group (NASDAQ:HCSG) & UMC (OTCMKTS:UMCN) Head to Head Survey

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

Volatility & Risk

Healthcare Services Group has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, UMC has a beta of 33.65, indicating that its share price is 3,265% more volatile than the S&P 500.

Valuation and Earnings

This table compares Healthcare Services Group and UMC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Services Group	$1.72 billion	0.79	$39.47 million	$0.54	35.56
UMC	N/A	N/A	-$180,000.00	N/A	N/A

Healthcare Services Group has higher revenue and earnings than UMC.

Insider and Institutional Ownership

98.0% of Healthcare Services Group shares are owned by institutional investors. 2.6% of Healthcare Services Group shares are owned by insiders. Comparatively, 16.8% of UMC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Healthcare Services Group and UMC’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%
UMC	-1,022.22%	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Healthcare Services Group and UMC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Services Group	0	4	3	0	2.43
UMC	0	0	0	0	0.00

Healthcare Services Group currently has a consensus target price of $19.40, indicating a potential upside of 1.04%. Given Healthcare Services Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Healthcare Services Group is more favorable than UMC.

Summary

Healthcare Services Group beats UMC on 9 of the 11 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 UMC

UMC, Inc. provides medical insurance claims coding and processing, electronic medical records storage, chargemaster review, pricing comparison, and accounts receivable management services to healthcare providers. Its customers primarily include hospitals, medical clinics, and physician practitioners in the United States. The company was formerly known as United Medicorp, Inc. and changed its name to UMC, Inc. in May 2007. UMC, Inc. was incorporated in 1989 and is based in Pampa, Texas.