Critical Comparison: Willdan Group (NASDAQ:WLDN) versus Premium Catering (NASDAQ:PC)

Willdan Group (NASDAQ:WLDN) and Premium Catering (NASDAQ:PC) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Willdan Group and Premium Catering, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willdan Group	0	1	3	0	2.75
Premium Catering	1	0	0	0	1.00

Willdan Group currently has a consensus price target of $112.67, suggesting a potential upside of 40.57%. Given Willdan Group’s stronger consensus rating and higher probable upside, analysts plainly believe Willdan Group is more favorable than Premium Catering.

Institutional and Insider Ownership

72.3% of Willdan Group shares are held by institutional investors. 8.6% of Willdan Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Willdan Group has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Premium Catering has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Valuation & Earnings

This table compares Willdan Group and Premium Catering”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Willdan Group	$681.55 million	1.73	$52.56 million	$3.48	23.03
Premium Catering	$3.35 million	5.81	-$4.24 million	N/A	N/A

Willdan Group has higher revenue and earnings than Premium Catering.

Profitability

This table compares Willdan Group and Premium Catering’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willdan Group	7.71%	23.34%	12.78%
Premium Catering	N/A	N/A	N/A

Summary

Willdan Group beats Premium Catering on 11 of the 12 factors compared between the two stocks.

About Willdan Group

Willdan Group, Inc., together with its subsidiaries, provides professional, technical, and consulting services primarily in the United States. It operates in two segments, Energy, and Engineering and Consulting. The Energy segment offers comprehensive audit and surveys, program design and implementation, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, measurement and verification services, and software and data analytics, as well as energy consulting and engineering, turnkey facility and infrastructure projects, and customer support services. The Engineering and Consulting segment provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services. This segment also offers district administration, financial consulting, and federal compliance services. It serves public and governmental agencies, including cities, counties, redevelopment agencies, water districts, school districts, and universities; investor and municipal owned energy utilities; state and federal agencies; and commercial and industrial firms, as well as various other special districts and agencies. The company was founded in 1964 and is headquartered in Anaheim, California.

About Premium Catering

Premium Catering (Holdings) Limited, through its subsidiary, engages in the business of food catering for function, events, and workers in Singapore. The company provides Halal food in Indian, Bangladesh, and Chinese cuisine to foreign workers, students, and other individuals residing in dormitories, as well foreign workers in the marine, logistics, and poultry industries. It also operates a central kitchen under the Premium Catering brand name to supply budget prepared meals to foreign construction workers; operates food stalls; and provides buffet catering services for private functions, and corporate and community events, as well as provides ancillary delivery services. The company was founded in 2012 and is based in Singapore. Premium Catering (Holdings) Limited operates as a subsidiary of Hero Global Enterprises Limited.