Financial Contrast: BGSF (NYSE:BGSF) and Primech (NASDAQ:PMEC)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for BGSF and Primech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BGSF	1	1	0	1	2.33
Primech	1	0	0	0	1.00

Valuation & Earnings

This table compares BGSF 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
BGSF	$93.31 million	0.60	-$11.43 million	($1.00)	-5.25
Primech	$74.35 million	0.36	-$1.94 million	N/A	N/A

Primech has lower revenue, but higher earnings than BGSF.

Insider and Institutional Ownership

37.2% of BGSF shares are owned by institutional investors. Comparatively, 88.1% of Primech shares are owned by institutional investors. 8.0% of BGSF shares are owned 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.

Volatility & Risk

BGSF has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Primech has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BGSF	-11.98%	-18.91%	-12.30%
Primech	N/A	N/A	N/A

Summary

Primech beats BGSF on 6 of the 11 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 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.