Reviewing VCI Global (NASDAQ:VCIG) & SGS (OTCMKTS:SGSOY)

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

Volatility & Risk

SGS has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, VCI Global has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Institutional and Insider Ownership

0.2% of VCI Global shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for SGS and VCI Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SGS	1	2	1	3	2.86
VCI Global	1	0	0	0	1.00

Dividends

SGS pays an annual dividend of $0.18 per share and has a dividend yield of 1.7%. VCI Global pays an annual dividend of $0.01 per share and has a dividend yield of 0.7%.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SGS	$8.38 billion	2.40	$806.28 million	N/A	N/A
VCI Global	$138.60 million	0.01	$7.87 million	N/A	N/A

SGS has higher revenue and earnings than VCI Global.

Profitability

This table compares SGS and VCI Global’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
VCI Global	N/A	N/A	N/A

Summary

SGS beats VCI Global on 7 of the 9 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 VCI Global

VCI Global Limited, together with its subsidiaries, provides business and technology consulting services in Malaysia. The company offers business strategy consultancy services, including listing solutions, investors relations, and boardroom strategies consultancy. It also provides technology consultancy services and solutions, such as digital development, fintech solution, and software solutions. In addition, the company engages in corporate and business advisory services in corporate finance, corporate structuring and restructuring, equity investment, and merger and acquisition; listings on recognized stock exchanges; fintech advisory; technology development; and computer software programming. Further, it is involved in provision of artificial intelligence; image processing; communication; networking and process control software services; money lending services; education and training services; real estate management consultancy services; and leasing and operational management of resort properties. The company serves its products to small-medium enterprises and government-linked agencies, as well as to publicly traded conglomerates across various industries. VCI Global Limited was founded in 2013 and is headquartered in Kuala Lumpur, Malaysia.