Franklin Covey (NYSE:FC – Get Free Report) and Barrett Business Services (NASDAQ:BBSI – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
Valuation and Earnings
This table compares Franklin Covey and Barrett Business Services”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin Covey | $267.07 million | 0.79 | $3.07 million | $0.17 | 109.72 |
| Barrett Business Services | $1.27 billion | 0.64 | $54.45 million | $1.36 | 24.43 |
Barrett Business Services has higher revenue and earnings than Franklin Covey. Barrett Business Services is trading at a lower price-to-earnings ratio than Franklin Covey, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Franklin Covey has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Barrett Business Services has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
Profitability
This table compares Franklin Covey and Barrett Business Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin Covey | 0.83% | 17.37% | 4.04% |
| Barrett Business Services | 2.77% | 20.95% | 6.11% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Franklin Covey and Barrett Business Services, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin Covey | 1 | 1 | 2 | 0 | 2.25 |
| Barrett Business Services | 0 | 3 | 2 | 1 | 2.67 |
Franklin Covey presently has a consensus target price of $27.50, suggesting a potential upside of 47.43%. Barrett Business Services has a consensus target price of $41.00, suggesting a potential upside of 23.42%. Given Franklin Covey’s higher probable upside, analysts plainly believe Franklin Covey is more favorable than Barrett Business Services.
Insider and Institutional Ownership
69.9% of Franklin Covey shares are held by institutional investors. Comparatively, 86.8% of Barrett Business Services shares are held by institutional investors. 15.2% of Franklin Covey shares are held by company insiders. Comparatively, 4.8% of Barrett Business Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Barrett Business Services beats Franklin Covey on 10 of the 14 factors compared between the two stocks.
About Franklin Covey
Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
About Barrett Business Services
Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. It offers professional employer services under which it enters into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, payroll taxes, workers compensation coverage, and other administration functions for the client’s existing workforce. The company provides staffing and recruiting services, such as on-demand or short-term staffing assignment, contract staffing, direct placement, and long-term or indefinite-term on-site management services. It serves electronics manufacturers, light-manufacturing industries, agriculture-based companies, transportation and shipping enterprises, food processors, telecommunications companies, public utilities, general contractors in various construction-related fields, restaurant franchises, and professional services firms. Barrett Business Services, Inc. was incorporated in 1965 and is headquartered in Vancouver, Washington.
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