BG Staffing (NYSE:BGSF) and Cross Country Healthcare (NASDAQ:CCRN) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.
Risk and Volatility
BG Staffing has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Cross Country Healthcare has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
This table compares BG Staffing and Cross Country Healthcare’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BG Staffing||$294.31 million||0.28||$13.25 million||$1.67||4.84|
|Cross Country Healthcare||$822.22 million||0.27||-$57.71 million||$0.15||39.13|
BG Staffing has higher earnings, but lower revenue than Cross Country Healthcare. BG Staffing is trading at a lower price-to-earnings ratio than Cross Country Healthcare, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for BG Staffing and Cross Country Healthcare, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cross Country Healthcare||0||3||1||0||2.25|
Cross Country Healthcare has a consensus price target of $7.67, indicating a potential upside of 30.61%. Given Cross Country Healthcare’s higher possible upside, analysts plainly believe Cross Country Healthcare is more favorable than BG Staffing.
This table compares BG Staffing and Cross Country Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cross Country Healthcare||-2.41%||6.34%||2.67%|
Institutional & Insider Ownership
46.9% of BG Staffing shares are held by institutional investors. Comparatively, 91.0% of Cross Country Healthcare shares are held by institutional investors. 3.7% of BG Staffing shares are held by company insiders. Comparatively, 5.3% of Cross Country Healthcare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
BG Staffing beats Cross Country Healthcare on 8 of the 13 factors compared between the two stocks.
About BG Staffing
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.
About Cross Country Healthcare
Cross Country Healthcare, Inc. provides healthcare staffing, recruiting, and workforce solutions in the United States. The company operates in three segments: Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. The Nurse and Allied Staffing segment offers traditional staffing, including temporary and permanent placement of travel nurses and allied professionals, branch-based local nurses, and allied staffing; short-term staffing of registered nurses, licensed practical nurses, certified nurse assistants, practitioners, pharmacists, and other allied professionals on per diem and short-term assignments; and travel allied professionals on long-term contract assignments. It serves public and private acute care and non-acute care hospitals, government facilities, public and charter schools, outpatient clinics, ambulatory care facilities, physician practice groups, retailers, and other healthcare providers under the Cross Country Staffing, Mediscan, and DirectEd brands. The Physician Staffing segment provides physicians in various specialties, certified registered nurse anesthetists, nurse practitioners, and physician assistants under the Medical Doctor Associates brand as independent contractors on temporary assignments at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The Other Human Capital Management Services segment offers retained and contingent search services for physicians, healthcare executives, nurses, advanced practice, and allied health professionals. Cross Country Healthcare, Inc. was founded in 1996 and is headquartered in Boca Raton, Florida.
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