BG Staffing (BGSF) & The Competition Critical Review

BG Staffing (NYSE: BGSF) is one of 26 public companies in the “Help supply services” industry, but how does it weigh in compared to its peers? We will compare BG Staffing to similar businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Earnings and Valuation

This table compares BG Staffing and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BG Staffing $294.31 million $13.25 million 5.85
BG Staffing Competitors $3.71 billion $122.83 million 15.54

BG Staffing’s peers have higher revenue and earnings than BG Staffing. BG Staffing is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

BG Staffing pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. BG Staffing pays out 12.0% of its earnings in the form of a dividend. As a group, “Help supply services” companies pay a dividend yield of 2.2% and pay out 30.3% of their earnings in the form of a dividend.

Profitability

This table compares BG Staffing and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BG Staffing 1.27% 20.86% 11.35%
BG Staffing Competitors 1.02% 29.90% 5.48%

Volatility & Risk

BG Staffing has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, BG Staffing’s peers have a beta of 1.64, suggesting that their average stock price is 64% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for BG Staffing and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BG Staffing 0 0 0 0 N/A
BG Staffing Competitors 302 786 906 52 2.35

As a group, “Help supply services” companies have a potential upside of 4.93%. Given BG Staffing’s peers higher probable upside, analysts plainly believe BG Staffing has less favorable growth aspects than its peers.

Insider & Institutional Ownership

46.9% of BG Staffing shares are owned by institutional investors. Comparatively, 62.4% of shares of all “Help supply services” companies are owned by institutional investors. 5.4% of BG Staffing shares are owned by company insiders. Comparatively, 12.6% of shares of all “Help supply services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

BG Staffing peers beat BG Staffing on 7 of the 12 factors compared.

BG Staffing Company Profile

BG Staffing, Inc. provides workforce solutions and placement services in the United States. It operates through three segments: Real Estate, Professional, and Light Industrial. The Real Estate segment provides office and maintenance field talent to various apartment communities and commercial buildings through 56 branch offices in 29 states. The Professional segment offers skilled IT professionals with expertise in SAP, Workday, Olik View, Hyperion, Oracle, One Stream, cyber, project management, and other IT workforce solutions to client partners; and finance, accounting, legal, human resource, and related support personnel. Its client partners include Fortune 500 companies, and medium and small companies, as well as consulting firms that engage in systems integration projects. The Light Industrial segment offers skilled and unskilled field talent to manufacturing, distribution, logistics, and call center client partners. It has 12 branch offices and 15 on-site locations operating in 7 states. The company was formerly known as LTN Staffing, LLC and changed its name to BG Staffing, Inc. in November 2013. BG Staffing, Inc. is headquartered in Plano, Texas.

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