Performant Financial (NASDAQ: PFMT) and Willdan Group (NASDAQ:WLDN) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Volatility and Risk
Performant Financial has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Willdan Group has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.
This table compares Performant Financial and Willdan Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Performant Financial||$141.36 million||0.85||-$11.45 million||($0.51)||-4.65|
|Willdan Group||$208.94 million||1.00||$8.29 million||$1.15||20.75|
Willdan Group has higher revenue and earnings than Performant Financial. Performant Financial is trading at a lower price-to-earnings ratio than Willdan Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Performant Financial and Willdan Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Willdan Group has a consensus price target of $37.67, suggesting a potential upside of 57.87%. Given Willdan Group’s higher possible upside, analysts plainly believe Willdan Group is more favorable than Performant Financial.
This table compares Performant Financial and Willdan Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
54.5% of Performant Financial shares are owned by institutional investors. Comparatively, 66.1% of Willdan Group shares are owned by institutional investors. 33.6% of Performant Financial shares are owned by insiders. Comparatively, 13.3% of Willdan Group 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.
Willdan Group beats Performant Financial on 12 of the 13 factors compared between the two stocks.
Performant Financial Company Profile
Performant Financial Corporation (Performant) provides technology-enabled recovery and related analytics services in the United States. The Company’s services identify and recover delinquent or defaulted assets and improper payments for both government and private clients in a range of markets. The Company provides its services on an outsourced basis where the Company handles many or all aspects of its clients’ recovery processes. The Company uses its technology-enabled services platform to provide recovery and analytics services in a range of markets for the identification and recovery of student loans, improper healthcare payments and delinquent state tax and federal treasury receivables. It provides recovery services to the government-supported student loan industry and its clients include the Department of Education and Guaranty Agencies, as well as private financial institutions. The Company provides recovery services related to improper payments in the healthcare market.
Willdan Group Company Profile
Willdan Group, Inc. is a holding company. The Company provides professional technical and consulting services to utilities, private industry and public agencies at all levels of government, primarily in California and New York. It operates through four segments: Energy Efficiency Services, Engineering Services, Public Finance Services and Homeland Security Services. The Energy Efficiency Services segment provides energy efficiency consulting services to utilities, state agencies, municipalities, private industry and non-profit organizations. The Engineering Services segment offers a range of engineering and planning services to its public and private sector clients. The Public Finance Services segment provides support for the various financing techniques employed by public agencies to finance their operations and infrastructure. The Homeland Security Services segment provides national preparedness, homeland security consulting, public safety and emergency response services.
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