Black Diamond Group (OTCMKTS:BDIMF – Get Free Report) and Healthcare Services Group (NASDAQ:HCSG – Get Free Report) are both small-cap business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Profitability
This table compares Black Diamond Group and Healthcare Services Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Black Diamond Group | 8.23% | 10.76% | 4.79% |
| Healthcare Services Group | 2.20% | 12.23% | 7.52% |
Analyst Recommendations
This is a summary of current ratings and price targets for Black Diamond Group and Healthcare Services Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Black Diamond Group | 0 | 0 | 1 | 0 | 3.00 |
| Healthcare Services Group | 0 | 4 | 3 | 0 | 2.43 |
Insider & Institutional Ownership
98.0% of Healthcare Services Group shares are held by institutional investors. 25.2% of Black Diamond Group shares are held by company insiders. Comparatively, 2.6% of Healthcare Services Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Black Diamond Group and Healthcare Services Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Black Diamond Group | $294.14 million | 2.38 | $18.72 million | $0.41 | 25.00 |
| Healthcare Services Group | $1.72 billion | 0.77 | $39.47 million | $0.54 | 34.65 |
Healthcare Services Group has higher revenue and earnings than Black Diamond Group. Black Diamond 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.
Volatility & Risk
Black Diamond Group has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Healthcare Services Group has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Summary
Healthcare Services Group beats Black Diamond Group on 9 of the 14 factors compared between the two stocks.
About Black Diamond Group
Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, high security modular buildings, custom manufactured modular facilities, blast resistant structures, SmartSpace interchangeable paneled units, and storage containers. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary rental items, products, and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. It also provides specialized field rentals to oil and gas industries. The company markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. Black Diamond Group Limited was founded in 2003 and is headquartered in Calgary, Canada.
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.
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