SPAR Group (NASDAQ:SGRP) versus APi Group (NYSE:APG) Financial Analysis

APi Group (NYSE:APG) and SPAR Group (NASDAQ:SGRP) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Risk and Volatility

APi Group has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, SPAR Group has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
APi Group	3.85%	37.63%	14.28%
SPAR Group	-18.51%	-107.74%	-19.90%

Insider & Institutional Ownership

86.6% of APi Group shares are held by institutional investors. Comparatively, 9.6% of SPAR Group shares are held by institutional investors. 18.7% of APi Group shares are held by insiders. Comparatively, 43.0% of SPAR Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APi Group	$8.17 billion	2.10	$302.00 million	($0.71)	-55.74
SPAR Group	$132.58 million	0.08	-$24.63 million	($1.03)	-0.37

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

Analyst Ratings

This is a summary of current ratings for APi Group and SPAR Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APi Group	0	2	5	1	2.88
SPAR Group	1	0	0	0	1.00

APi Group presently has a consensus price target of $53.17, indicating a potential upside of 34.34%. Given APi Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe APi Group is more favorable than SPAR Group.

Summary

APi Group beats SPAR Group on 13 of the 15 factors compared between the two stocks.

About APi Group

APi Group Corporation provides safety and specialty services worldwide. It operates through Safety Services and Specialty Services segments. The Safety Services segment offers solutions focusing on end-to-end integrated occupancy systems, such as fire protection services; heating, ventilation, and air conditioning solutions; and entry systems, which include the design, installation, inspection, and service of these integrated systems. The Specialty Services segment provides various infrastructure and specialized industrial plant services, including maintenance and repair of underground electric, gas, water, sewer, and telecommunications infrastructure. This segment offers engineering and design, fabrication, installation, maintenance service and repair, retrofitting and upgrading services, pipeline infrastructure, access and road construction, supporting facilities, and integrity management and maintenance to the energy industry. It serves customers in the public and private sectors, including commercial, industrial, distribution and fulfillment centers, manufacturing, education, healthcare, telecom, utilities, transmission and integrity, high tech, entertainment, government, and infrastructure markets. The company was formerly known as J2 Acquisition Limited and changed its name to APi Group Corporation in October 2019. APi Group Corporation was founded in 1926 and is headquartered in New Brighton, Minnesota.

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.