BGSF (NYSE:BGSF – Get Free Report) and Acacia Research (NASDAQ:ACTG – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Insider and Institutional Ownership
37.2% of BGSF shares are owned by institutional investors. Comparatively, 86.7% of Acacia Research shares are owned by institutional investors. 8.0% of BGSF shares are owned by insiders. Comparatively, 1.1% of Acacia Research shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
BGSF has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Acacia Research has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BGSF | 1 | 1 | 1 | 1 | 2.50 |
| Acacia Research | 1 | 0 | 1 | 0 | 2.00 |
BGSF currently has a consensus price target of $9.00, indicating a potential upside of 41.73%. Acacia Research has a consensus price target of $6.00, indicating a potential upside of 23.20%. Given BGSF’s stronger consensus rating and higher possible upside, analysts clearly believe BGSF is more favorable than Acacia Research.
Valuation & Earnings
This table compares BGSF and Acacia Research”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BGSF | $93.31 million | 0.76 | -$3.34 million | ($1.03) | -6.17 |
| Acacia Research | $285.23 million | 1.65 | -$36.06 million | $0.05 | 97.40 |
BGSF has higher earnings, but lower revenue than Acacia Research. BGSF is trading at a lower price-to-earnings ratio than Acacia Research, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BGSF and Acacia Research’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BGSF | -8.43% | -14.13% | -7.72% |
| Acacia Research | 7.60% | 4.12% | 3.04% |
Summary
Acacia Research beats BGSF on 8 of the 14 factors compared between the two stocks.
About BGSF
BGSF, Inc., together with its subsidiaries, provides consulting, managed services, and professional workforce solutions in the United States. It operates in two segments, Property Management and Professional. The Property Management segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, management services, and other IT workforce solutions. This segment also offers finance, accounting, legal, human resource, and related support personnel. It serves its products to fortune 500 companies, and medium and small companies, as well as consulting companies. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.
About Acacia Research
Acacia is a publicly traded (Nasdaq: ACTG) company that is focused on acquiring and operating businesses across the industrial, energy and technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process, and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management.
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