DHI Group (NYSE: DHX) and Staffing 360 Solutions (NASDAQ:STAF) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares DHI Group and Staffing 360 Solutions’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DHI Group $220.87 million 0.62 $44.18 million ($0.11) -24.55
Staffing 360 Solutions $185.13 million 0.06 $1.96 million ($1.24) -0.60

DHI Group has higher revenue and earnings than Staffing 360 Solutions. DHI Group is trading at a lower price-to-earnings ratio than Staffing 360 Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for DHI Group and Staffing 360 Solutions, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DHI Group 0 4 1 0 2.20
Staffing 360 Solutions 0 0 0 1 4.00

DHI Group currently has a consensus target price of $7.03, suggesting a potential upside of 160.19%. Staffing 360 Solutions has a consensus target price of $2.00, suggesting a potential upside of 170.27%. Given Staffing 360 Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Staffing 360 Solutions is more favorable than DHI Group.

Volatility and Risk

DHI Group has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Staffing 360 Solutions has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

84.3% of DHI Group shares are owned by institutional investors. Comparatively, 2.6% of Staffing 360 Solutions shares are owned by institutional investors. 7.2% of DHI Group shares are owned by insiders. Comparatively, 13.8% of Staffing 360 Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares DHI Group and Staffing 360 Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DHI Group -2.34% 15.79% 5.36%
Staffing 360 Solutions -5.01% -113.60% -16.50%

Summary

DHI Group beats Staffing 360 Solutions on 10 of the 14 factors compared between the two stocks.

About DHI Group

DHI Group, Inc. provides data, insights and employment connections through specialized services for professional communities, including technology and security clearance, financial services, energy, healthcare and hospitality. The Company’s segments are Tech & Clearance, which includes Dice, Dice Europe and ClearanceJobs; Global Industry Group, which includes eFinancialCareers, Rigzone, Hcareers and BioSpace; Healthcare, which includes Health eCareers, and Corporate & Other, which includes Slashdot Media and Brightmatter. It sells recruitment packages, which allow customers to post jobs and source candidates through its resume databases and, in case of Dice, Dice Europe and eFinancialCareers, to utilize its Open Web search service. Its products and services include resume databases, job postings, open Web, and content and data. Its brands include Dice, Dice Europe, ClearanceJobs, Targeted Job Fairs, eFinancialCareers, Rigzone, BioSpace, Hcareers and Health eCareers.

About Staffing 360 Solutions

Staffing 360 Solutions, Inc. operates in the staffing sector. The Company is engaged in the execution of a global buy-and-build strategy through the acquisition of domestic and international staffing organizations in the United States and the United Kingdom. Its targeted consolidation model is focused on the finance and accounting, administrative, engineering and information technology (IT) staffing space.

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