Head-To-Head Comparison: Black Diamond Group (OTCMKTS:BDIMF) vs. BGSF (NYSE:BGSF)

BGSF (NYSE:BGSF) and Black Diamond Group (OTCMKTS:BDIMF) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Institutional and Insider Ownership

37.2% of BGSF shares are held by institutional investors. 8.0% of BGSF shares are held by company insiders. Comparatively, 25.2% of Black Diamond Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

BGSF has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Black Diamond Group has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares BGSF and Black Diamond Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BGSF	-6.32%	-13.16%	-7.20%
Black Diamond Group	8.23%	10.76%	4.79%

Earnings and Valuation

This table compares BGSF and Black Diamond Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BGSF	$272.50 million	0.18	-$3.34 million	($1.03)	-4.24
Black Diamond Group	$294.14 million	2.38	$18.72 million	$0.41	25.00

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

Analyst Recommendations

This is a summary of recent ratings for BGSF and Black Diamond Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	1	1	2.50
Black Diamond Group	0	0	1	0	3.00

BGSF currently has a consensus price target of $9.00, indicating a potential upside of 106.14%. Given BGSF’s higher probable upside, equities research analysts plainly believe BGSF is more favorable than Black Diamond Group.

Summary

Black Diamond Group beats BGSF on 11 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 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.