Financial Analysis: DLH (DLHC) and Its Competitors

DLH (NASDAQ:DLHC – Get Free Report) is one of 203 public companies in the “Professional Services” industry, but how does it compare to its peers? We will compare DLH to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Valuation and Earnings

This table compares DLH and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DLH $253.54 million $1.36 million -2.46
DLH Competitors $3.28 billion $228.36 million 29.90

DLH’s peers have higher revenue and earnings than DLH. DLH 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.

Profitability

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

Net Margins Return on Equity Return on Assets
DLH -8.51% -10.42% -4.04%
DLH Competitors -0.60% 20.41% 4.31%

Volatility & Risk

DLH has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, DLH’s peers have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for DLH and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DLH 1 1 1 0 2.00
DLH Competitors 1575 6429 9160 430 2.48

As a group, “Professional Services” companies have a potential upside of 26.83%. Given DLH’s peers stronger consensus rating and higher probable upside, analysts plainly believe DLH has less favorable growth aspects than its peers.

Institutional & Insider Ownership

67.2% of DLH shares are held by institutional investors. Comparatively, 57.4% of shares of all “Professional Services” companies are held by institutional investors. 12.8% of DLH shares are held by insiders. Comparatively, 17.1% of shares of all “Professional Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

DLH peers beat DLH on 11 of the 13 factors compared.

DLH Company Profile

(Get Free Report)

DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. It offers digital transformation and cyber security solutions, including artificial intelligence and machine learning, cloud enablement, cybersecurity ecosystem, big data analytics, and modeling and simulation to the National Institutes of Health (NIH), the Defense Health Agency, Tele-medicine and Advanced Technology Research Center, and US Navy Naval Information Warfare Center (NIWC). The company also provides science research and development services and solutions, such as data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions, including NIH and the Center for Disease Control and Prevention, as well as the Military Health System. In addition, it offers system engineering and integration solutions in the areas of pharmaceutical delivery logistics, fire protection engineering, biomedical equipment, and technology engineering on behalf of the Department of Veterans Affairs, NIWC, Health and Human Services, and other federal customers. The company also provides business process management services under the trademarks, e-PRAT and SPOT-m, as well as the registered trademark, Infinibyte for cloud-based solutions. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.

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