Contrasting Primech (NASDAQ:PMEC) and SPAR Group (NASDAQ:SGRP)

SPAR Group (NASDAQ:SGRP) and Primech (NASDAQ:PMEC) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Valuation & Earnings

This table compares SPAR Group and Primech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPAR Group	$163.63 million	0.13	-$3.15 million	($0.07)	-12.89
Primech	$74.35 million	0.52	-$1.94 million	N/A	N/A

Primech has lower revenue, but higher earnings than SPAR Group.

Analyst Recommendations

This is a summary of recent recommendations and price targets for SPAR Group and Primech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPAR Group	1	0	0	0	1.00
Primech	1	0	0	0	1.00

Risk and Volatility

SPAR Group has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, Primech has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares SPAR Group and Primech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPAR Group	-9.52%	-34.89%	-12.15%
Primech	N/A	N/A	N/A

Institutional and Insider Ownership

9.6% of SPAR Group shares are owned by institutional investors. Comparatively, 88.1% of Primech shares are owned by institutional investors. 50.9% of SPAR Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Primech beats SPAR Group on 7 of the 9 factors compared between the two stocks.

About SPAR Group

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services in the Americas, the Asia-Pacific, Europe, Middle East, and Africa. The company offers merchandising and marketing services, such as resets and cut-ins; price and inventory audits; stock replenishment and rotation services; out of stock management; promotional event setup; and display management, as well as category management and set up services comprising category and product resets; planogram maintenance; display and shelf services; and point of purchase installation and management. It also provides remodel and retail transformation consisting of store remodels, store department resets, fixture and banner installations, pop-up store services, and store closings; and assembly and installation services, including assembly of merchandise in stores, in-store services, office setup/down-sizing services, and national in-home furniture assembly services. In addition, the company offers business analytics and insights services, such as product dashboards, stock out reporting, visit reporting, real-time service insights, and share of shelf analytics; and fulfillment and distribution services comprising distribution center staffing, point of purchase fulfillment services, kiosk prep, returns processing, picking and packing services, and inventory services. The company serves mass merchandisers; HBAs; pharmacies; and grocery, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive aftermarket, office supply, personal technology, beverage, household products, consumables, financial products, and independent stores. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.

About Primech

Primech Holdings Ltd. provides facilities and stewarding services in the public and private sectors in Singapore. Its facilities services include educational institutions cleaning, airport cleaning, and conservancy areas cleaning services, as well as offers cleaning of hotels, public spaces, roads, condominium, office, industrial, and retail stores. The company offers housekeeping services; specialized cleaning services, including marble polishing, building façade cleaning, and clean room sanitation services; and waste management and pest control services. In addition, it provides stewarding services comprising cleaning of the kitchen area of healthcare facilities, hotels, and restaurants, as well as supplies ad hoc customer service officers, and food and beverage service crews to healthcare facilities, hotels, and restaurants. Further, the company operates HomeHelpy, an online portal that allows individual customers to book cleaning services in homes and offices; and manufactures and sells cleaning supplies, such as hand soaps, hand soap dispensers, cleaning fluids, and garbage bags used for general, floor, carpet, restroom, or kitchen purposes, as well as treatment products used in the marine industry under the D’Bond brand name. The company was incorporated in 2020 and is based in Singapore. Primech Holdings Ltd. is a subsidiary of Sapphire Universe Holdings Limited.