Financial Contrast: BGSF (NYSE:BGSF) vs. VCI Global (NASDAQ:VCIG)

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

Valuation & Earnings

This table compares VCI Global and BGSF”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VCI Global	$27.83 million	0.11	$7.87 million	N/A	N/A
BGSF	$272.50 million	0.24	-$3.34 million	($1.03)	-5.57

VCI Global has higher earnings, but lower revenue than BGSF.

Analyst Ratings

This is a summary of recent ratings and target prices for VCI Global and BGSF, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VCI Global	1	0	0	0	1.00
BGSF	1	1	1	1	2.50

BGSF has a consensus price target of $9.00, suggesting a potential upside of 56.93%. Given BGSF’s stronger consensus rating and higher possible upside, analysts clearly believe BGSF is more favorable than VCI Global.

Risk and Volatility

VCI Global has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, BGSF has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VCI Global	N/A	N/A	N/A
BGSF	-6.32%	-13.16%	-7.20%

Institutional and Insider Ownership

0.2% of VCI Global shares are held by institutional investors. Comparatively, 37.2% of BGSF shares are held by institutional investors. 8.0% of BGSF shares are held by company 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.

Summary

BGSF beats VCI Global on 8 of the 13 factors compared between the two stocks.

About VCI Global

VCI Global Limited, together with its subsidiaries, provides business and technology consulting services in Malaysia. The company offers business strategy consultancy services, including listing solutions, investors relations, and boardroom strategies consultancy. It also provides technology consultancy services and solutions, such as digital development, fintech solution, and software solutions. In addition, the company engages in corporate and business advisory services in corporate finance, corporate structuring and restructuring, equity investment, and merger and acquisition; listings on recognized stock exchanges; fintech advisory; technology development; and computer software programming. Further, it is involved in provision of artificial intelligence; image processing; communication; networking and process control software services; money lending services; education and training services; real estate management consultancy services; and leasing and operational management of resort properties. The company serves its products to small-medium enterprises and government-linked agencies, as well as to publicly traded conglomerates across various industries. VCI Global Limited was founded in 2013 and is headquartered in Kuala Lumpur, Malaysia.

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.