Comparing SGS (OTCMKTS:SGSOY) & Sodexo (OTCMKTS:SDXAY)

SGS (OTCMKTS:SGSOY) and Sodexo (OTCMKTS:SDXAY) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares SGS and Sodexo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SGS	N/A	N/A	N/A
Sodexo	N/A	N/A	N/A

Earnings & Valuation

This table compares SGS and Sodexo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SGS	$7.72 billion	3.05	$659.96 million	N/A	N/A
Sodexo	$26.49 billion	0.29	$765.33 million	N/A	N/A

Sodexo has higher revenue and earnings than SGS.

Risk and Volatility

SGS has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Sodexo has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Dividends

SGS pays an annual dividend of $0.18 per share and has a dividend yield of 1.5%. Sodexo pays an annual dividend of $0.45 per share and has a dividend yield of 4.4%.

Analyst Ratings

This is a summary of current ratings and target prices for SGS and Sodexo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SGS	1	2	1	3	2.86
Sodexo	1	10	0	0	1.91

Summary

SGS beats Sodexo on 5 of the 8 factors compared between the two stocks.

About SGS

SGS SA provides inspection, testing, and verification services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific. It operates in five segments: Connectivity & Products, Health & Nutrition, Industries & Environment, Natural Resources, and Business Assurance. The company provides laboratory testing, product inspection and consulting, process assessment, technical and transactional assistance; and automotive, connectivity, softlines and accessories, and hardgoods, toys, and juvenile products, as well as government and trade facilitation services. In addition, it offers a range of testing, inspection and certification solutions for the crop science, food, health science, and cosmetics and hygiene industries; field services, technical assessment, and advisory services; and services related to industrial, public health and safety, environmental testing, and public mandates. Further, it provides assessment, auditing, and certification, supply chain assurance, training, consulting, and sustainability assurance services; agricultural commodities, geochemistry, laboratory testing petroleum and chemicals, metallurgy and consulting, mineral and metal commodities, and oil, gas, and chemical commodities; and sustainability solutions. The company serves the agriculture and food, chemical, construction, consumer and retail, energy, industrial manufacturing, life sciences, mining, oil and gas, public, and transportation sectors. SGS SA was founded in 1878 and is headquartered in Geneva, Switzerland.

About Sodexo

Sodexo S.A. provides food services and facilities management services worldwide. It offers various on-site services, which includes corporate services, energy and resources, government and agencies, and other services; healthcare and seniors; and learning solutions to schools and universities. The company also provides food services comprising retail service, food delivery, and meal and food vouchers, as well as digital food ordering services; savings and purchase solutions, data and digital tools, and advisory services and client support; and work-life balance and employee experience solutions. In addition, it offers facility management services, including technical service management, assets management, building maintenance, access control, deep cleaning, energy management, space planning, project management, front-of-house services, grounds maintenance, waste management, HVAC systems, mail management, commercial cleaning, workspace management, and pest control. services. The company was formerly known as Sodexho Alliance and changed its name to Sodexo S.A. in 2008. Sodexo S.A. was founded in 1966 and is headquartered in Issy-les-Moulineaux, France.