Contrasting Willdan Group (NASDAQ:WLDN) & SGS (OTCMKTS:SGSOY)

Willdan Group (NASDAQ:WLDN) and SGS (OTCMKTS:SGSOY) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

72.3% of Willdan Group shares are held by institutional investors. 8.6% of Willdan Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Willdan Group and SGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willdan Group	0	1	3	0	2.75
SGS	1	2	1	3	2.86

Willdan Group presently has a consensus price target of $124.33, indicating a potential downside of 7.06%. Given Willdan Group’s higher probable upside, research analysts clearly believe Willdan Group is more favorable than SGS.

Earnings and Valuation

This table compares Willdan Group and SGS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Willdan Group	$565.80 million	3.49	$22.57 million	$2.78	48.12
SGS	$7.72 billion	3.00	$659.96 million	N/A	N/A

SGS has higher revenue and earnings than Willdan Group.

Volatility & Risk

Willdan Group has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, SGS has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Willdan Group and SGS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willdan Group	6.37%	20.23%	10.79%
SGS	N/A	N/A	N/A

Summary

Willdan Group beats SGS on 9 of the 13 factors compared between the two stocks.

About Willdan Group

Willdan Group, Inc., together with its subsidiaries, provides professional, technical, and consulting services primarily in the United States. It operates in two segments, Energy, and Engineering and Consulting. The Energy segment offers comprehensive audit and surveys, program design and implementation, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, measurement and verification services, and software and data analytics, as well as energy consulting and engineering, turnkey facility and infrastructure projects, and customer support services. The Engineering and Consulting segment provides building and safety, city engineering and code enforcement, development plan review and inspection, disaster recovery, geotechnical and earthquake engineering, planning and surveying, contract staff support, program and construction management, structural engineering, transportation and traffic engineering, and water resources services. This segment also offers district administration, financial consulting, and federal compliance services. It serves public and governmental agencies, including cities, counties, redevelopment agencies, water districts, school districts, and universities; investor and municipal owned energy utilities; state and federal agencies; and commercial and industrial firms, as well as various other special districts and agencies. The company was founded in 1964 and is headquartered in Anaheim, California.

About SGS

SGS SA provides inspection, testing, and verification services in Europe, Africa, the Middle East, the Americas, and the Asia Pacific. It operates in five segments: Connectivity & Products, Health & Nutrition, Industries & Environment, Natural Resources, and Business Assurance. The company provides laboratory testing, product inspection and consulting, process assessment, technical and transactional assistance; and automotive, connectivity, softlines and accessories, and hardgoods, toys, and juvenile products, as well as government and trade facilitation services. In addition, it offers a range of testing, inspection and certification solutions for the crop science, food, health science, and cosmetics and hygiene industries; field services, technical assessment, and advisory services; and services related to industrial, public health and safety, environmental testing, and public mandates. Further, it provides assessment, auditing, and certification, supply chain assurance, training, consulting, and sustainability assurance services; agricultural commodities, geochemistry, laboratory testing petroleum and chemicals, metallurgy and consulting, mineral and metal commodities, and oil, gas, and chemical commodities; and sustainability solutions. The company serves the agriculture and food, chemical, construction, consumer and retail, energy, industrial manufacturing, life sciences, mining, oil and gas, public, and transportation sectors. SGS SA was founded in 1878 and is headquartered in Geneva, Switzerland.