Healthcare Services Group (NASDAQ:HCSG – Get Free Report) and APi Group (NYSE:APG – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Profitability
This table compares Healthcare Services Group and APi Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Healthcare Services Group | 3.67% | 17.81% | 11.06% |
| APi Group | 3.85% | 37.63% | 14.28% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Healthcare Services Group and APi Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Healthcare Services Group | 0 | 4 | 5 | 0 | 2.56 |
| APi Group | 0 | 2 | 5 | 1 | 2.88 |
Valuation & Earnings
This table compares Healthcare Services Group and APi Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Healthcare Services Group | $1.84 billion | 0.95 | $59.06 million | $0.96 | 26.36 |
| APi Group | $7.91 billion | 2.20 | $302.00 million | ($0.71) | -56.54 |
APi Group has higher revenue and earnings than Healthcare Services Group. APi Group is trading at a lower price-to-earnings ratio than Healthcare Services Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
98.0% of Healthcare Services Group shares are held by institutional investors. Comparatively, 86.6% of APi Group shares are held by institutional investors. 2.9% of Healthcare Services Group shares are held by company insiders. Comparatively, 18.7% of APi Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Healthcare Services Group has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, APi Group has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.
Summary
APi Group beats Healthcare Services Group on 11 of the 14 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 APi Group
APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.
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